Merger of rural banks is to strengthen capital base

Agona Swedru, July 23, GNA - Mr Duke Osam Duodu, Deputy Managing Director of Apex Bank, has said the proposal that rural and community banks should merge is to enable them to strengthen their capital base and enhance revenue mobilization.

He said at a training workshop for Board of Directors and managers of rural banks in the Central Region at Agona Swedru that the mergers would also enhance share value and profit. The workshop was organized by the Central Regional Chapter of the Association of Rural Banks and sponsored by Apex Bank. Mr Osam Duodu said some of the rural banks are failing in mobilizing capital and revenue and there was the need for them to enhance effective and efficient operations through mergers.

He said the Apex Bank, as the mother of rural banks, had no intention to impose the proposal on the banks but would also make sure the banks maintain the concept of rural banking. "We are not here to prescribe medicine for the managers and board of directors of the rural banks but we are here to assist to find lasting solution to the merger of banks," he said. Mr Osam Duodu said the Apex Bank had set up a merger and acquisition unit with assistance from World Bank, Africa Development Bank and other donors to run sensitization programmes for managers and directors of rural banks.

Mr Kweku Acquaah, President of the Central regional Chapter of the Association of Rural Bank, appealed to directors and managers of the banks to start educating stakeholders such as opinion leaders, assembly members, chiefs and church leaders about the proposed mergers. 23 July 09