Rural and Community Banks asked to strengthen internal audit units

The Managing Director of the ARB Apex Bank, Mr. Kwadwo Aye Kusi, has the urged strengthening of the internal audit units of the Rural and Community Banks (RCB) to reduce financial risks.  

He said those units needed to be adequately resourced to operate more efficiently to protect depositors’ money.    

He made the call in a speech read for him at the 27th annual general meeting of the shareholders of the Nsoatreman Rural Bank Limited held in Nsoatre in the Sunyani West District.    

Mr. Aye Kusi also highlighted the need for them to avoid investing greater percentage of their liquid assets in financial institutions other than the Central Bank.   

He said although such investments promised high yield, he warned that “in case of any financial crises, the probability of the rural bank losing such a financial investment is so high to affect its operations – lack of money for daily customers withdrawals and creation of panic withdrawals, which can eventually collapse some of the banks”.

Mr. Kofi Agyeman, the Board Chairman, told owners of the bank that it made profit before tax of GH¢247,135.07 on its operation, last year.  

This represented a 3.25 per cent increase over the previous year’s total of GH¢239,349.18.    

He said during the period its deposits also grew to GH¢9,994,999.07 from the year 2014 figure of GH¢8,975,939.79.   

Mr. Agyeman said the bank additionally saw growth in its total assets, share capital, investment, loans and advances.

He indicated that the bank’s performance was impressive considering the difficult business environment.

Source: GNA