Don't engage dismissed employees of other banks - central bank urges rural banks

Big Ada (Eastern Region), 30 Nov. '98 - Mr E. Asiedu-Mante, head of banking services department of the Bank of Ghana (BOG) has called on rural/community banks to discourage the practice of engaging dismissed employees of other banks.

Such appointments must not be considered on issues such as tribal and personal affiliations but rather on integrity, honesty, qualification and ability to perform.

He made the call in a speech read on his at the 14th annual general meeting of the Ada rural bank at Big Ada.

"Rural banks must ensure that only fit and proper people are employed to work with the bank, " he said, and cautioned the banks to examine critically the background of management staff before recruitment.

He said the complex nature of modern banking business calls for the continual upgrading of the knowledge of bankers and asked the association of rural banks to institute measures aimed at improving capacity building of their staff.

To enable farmers and fishermen to purchase inputs and equipment to increase their productivity, the banks are urged to improve the rural credit delivery system.

Mr Asiedu-Mante stated that huge loans granted to urban customers which have remained unrecovered coupled with fraudulent practices by management and directors have continued to weaken the rural banks in advancing credit to stimulate the rural economy.

The bank declared a pre-tax profit of 43.2 million cedis for 1997 as against 45.6 in 1996 thus making a decrease of about five per cent.

Loans, overdrafts, and advances granted to the bank's customers increased from 79.7 million cedis in 1996 to 162.8 in 1997 recording an increase of 104 per cent.