Rural banks commended for services in rural areas

Alhaji Amadu Montia, Chief Manager of the Bank of Ghana (BOG) has expressed the Bank's appreciation for efforts made by rural banks to extend their services to remotest parts of the country.

He said the trend had contributed immensely to making institutional credit available to micro-scale economic operatives in the rural communities and assisting them to create wealth to improve their living standards.

Alhaji Montia was addressing the official commissioning of the Zabrama Agency of the Yapra Rural Bank Limited at the weekend at Zabrama in the Atebubu District of Brong-Ahafo.

He explained that the originators of the rural banking idea saw it as a simple and flexible system to meet the peculiar needs of predominantly small depositors and borrowers in the rural areas.

That was why the BOG appreciated in significant terms, the efforts being made by rural banks in extending banking services to the remotest corners of the country, the chief manager added.

Alhaji Montia said the opening of the Zabrama agency attested to the readiness of the management of the Yapra Rural Bank to rise up to the emerging opportunities and challenges in the banking industry.

"The operations in this area would become one of the most profitable ventures of the bank, if appropriate marketing and sound operational practices are adopted to suit the needs of customers in this fast growing commercial community," he said.

Alhaji Montia commended the management and board of directors of the Yapra Rural Bank not only for ensuring the establishment of the Zabrama agency but also for proving as the sole financier of the agency from its profits and called on the management of all rural banks to emulate the Yapra bank.

He advised the management of the bank to finance capital projects from shareholders' funds and not from depositors' funds.

Alhaji Montia also advised management of rural banks to institute strong internal control measures to forestall unsound banking practices like embezzlement, granting of unauthorized credit facilities, suppression of deposits, cross-firing, manipulation of accounts, imbalances of accounts among others.

The BOG official appealed to opinion leaders in the Zabrama community to educate their people not only to patronize the rural bank but also to repay their loans promptly so that funds could be recycled for the benefit of others.

He charged the authorities of the Yapra main bank at Prang also in the Atebubu District to adopt good credit management practices to protect the interest of the newly carved Zabrama agency.

Alhaji Montia said the commitment of the BOG to the steady growth and development of rural banks within a vibrant banking system was crucial, adding that efforts would be made to pursue policies and programmes to strengthen the rural and community banks to perform their developmental role in the economy.

In a welcoming address Mr. Ahmed Mohammed Awal, Chairman of Board of Directors of the Yapra Rural Bank said with the commissioning of the Zabrama agency, the bank established in 1984 at Prang, now had four agencies and named Yeji, Abease and Atebubu as the others.

He noted that it was not easy for the Management and Board of Directors of the Bank to get BOG's approval for the establishment of the Zabrama agency because of the fear that the communities would not patronize it.

The Board chairman advised the people to patronize the agency's services as a way of assuring the BOG and everybody that the agency was worth its establishment and commissioning.

"The Yapra Rural Bank views ignorance and hunger as the most dreadful disease in the world today and not leprosy, tuberculosis or even HIV/AIDS," he said, adding that the bank last year instituted a programme to reduce the ignorance level among the people about banking.

He said the on-going educational programme on ignorance and hunger in the various communities within the Yapra area was aimed at educating the people to cultivate banking habits to avoid financial mishaps including armed robbery, fire and other negative activities that impede progress.

The campaign team, he said visited about 54 communities within the Atebubu District last year, adding that consultations were going on to assess the possible involvement of health personnel for the discussion of AIDS awareness topics.

As part of the campaign to reduce hunger within the catchments area, the Board Chairman announced that Yapra injected a total of 202 million cedis as credit to farmers and another 192 million cedis granted to traders in foodstuffs to ensure ready markets for the farmers.

The credits excluded the District Assembly's Poverty Alleviation Fund and 310 million cedis credit granted to the farmers by the government, both of which were channelled through the Bank.

Mr. Awal announced that in the year 2002 Yapra rural bank instituted a 10 million cedis scholarship scheme for the poor but brilliant Junior Secondary School (JSS) students seeking to enter Senior Secondary Schools (SSS) within the district with the searchlight on students scoring between aggregate six to 12

The scholarship scheme of the bank will take effect from the 2003/2004 academic years and alongside the policy, the Bank would be donating educational materials to identified performing schools in the area.

The rationale behind these policies is to enhance the poor enrolment levels in the SSS in the district, the Board Chairman further explained and appealed to Non-Governmental Organisations (NGOs) and other societies to support the Bank in its scholarship scheme.

Mr. Richard Mettle Addo, Head of Training of ARB APEX Bank announced that there were 451 rural banks in the country, including the Zabrama agency.

Mr Robert Nantoma Samari, Chief Project Manager of Prang Rural Bank told Ghana News Agency in an interview that it cost the bank 192 million cedis to renovate the office building of the Zabrama agency, which was also expected to cater for Beniem, Kyerembo, Burkina, Krobo, Kyiremako, Kumfoukrom, Basa, Abom-Basare, Yaw Dapare, Bronikrom and many more communities whose main occupation is the cultivation of cereals and tubers.

Nana Osabarima Kokroko Nyumakwa II, Omanhene of Abease Traditional Area presided.