Nzema Rural Makes Improvement

Egya-Azane (Western Region), 15 Sept.,

The Nzema Azane Manle Rural Bank Limited has made improvements in its level of capital adequacy. Mr. J. Erzuah-Nyenzah, Chairman of the Board of Directors of the bank, announced this at its 15th annual general meeting held at Egya- Azane on Saturday. He said the bank was confronted with capital inadequacy of 44 million cedis in 1992 as a result of a re-structuring exercise. Mr. Erzuah-Nyenzah said the bank recorded capital adequacy of 43. 03 million cedis in 1996 as against six point zero four million cedis in 1995. The bank also recorded an increase of 47. 44 per cent in total deposits within 18 months from July, 1995. Mr. Erzuah-Nyenzah said the bank recorded a total deposit of 393,378,457 cedis in 1996 as against 275,416,086 cedis in 1995. He said due to immediate past experience of high loan defaulters and in view of the bank's capital inadequacy, the Board of Directors has pursued a policy of safe lending to ensure a timely elimination of the capital inadequacy problem. Mr. Erzuah-Nyenzah said the Board of Directors also invested 250 million cedis in Bank of Ghana bonds in 1996 as against 170 million cedis in 1995 in line with its policy of risk -free investment. He said the subsidiary company of the bank has been registering poor results since its inception and the Board has therefore given it one year up to December 31, 1997, to show signs of viability or it will be dissolved after that date. Mr. Erzuah-Nyenzah said the bank has complied with Bank of Ghana requirements of elevation to Community Bank status and asked for the approval of the shareholders to enable the Board to apply for re- registration.