ARB explains delay in Apex Bank formation

Mr. Samuel N. Dzane, a member of the Transitional Apex Steering Committee (TASC) for the proposed Apex Bank to oversee rural banks, said on Wednesday the establishment of the bank has delayed because its financiers were not sure about the political future of the country.

Speaking to the GNA in Accra, Mr Dzane said the uncertainty about which party was going to form the next government was a major reason why the overseas financiers withheld their contributions until after the elections.

"Now that we have a new government which has the formation of the Apex Bank enshrined in its manifesto, the bank is ready to start full operations in July this year," he said.

Mr Dzane said cabinet has approved the Rural Financial Service Project (RFSP) under which the Bank is to be established, adding that it is currently before parliament. "Processes for a banking license have also reached an advanced stage and the final approval is expected within this quarter," he said.

Mr Dzane said the ARB (Association of Rural Banks) Apex Bank Draft Regulations which constitute the legal and regulatory framework for the bank have been completed by the consultants and submitted to the Attorney General's Department for final review."

Mr. Dzane said the clearing procedures, the telegraphic and mail transfer systems have also been completed, adding that prior to official opening, the headquarters office in Accra has started providing some services to the rural banks.

He said the Ministry of Works and Housing is in contact with the Ashanti and Northern Regional Co-ordinating Councils to assist in locating office spaces in Kumasi and Tamale.

"Letters of allotment of shares have been issued to 102 out of the 114 Rural and Community banks," he said. "So far, an amount of 801 million cedis has been received and paid into the share contribution account at the Bank of Ghana."

Information available to the GNA indicates that the establishment of the bank is estimated at 22.7 million dollars, out of which the government will contribute 750,000 US dollars.

The 114 beneficiary rural and community banks are to contribute a token of between one million and 20 million cedis each to make 1.95 million dollars.

Other financiers are the World Bank, five million dollars, African Development Bank (AfDB), 5.070 million dollars and International Fund for Agricultural Development (IFAD), 10 million dollars.

Mrs. Eunice Osei-Bonsu, Public Relations and Marketing Manager of ARB said the bank would among other things, offer such non-banking services as training for the rural and community bank staff.

The bank was supposed to have started operation in December last year.