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Business News of Friday, 23 December 2016

Source: GNA

Akyempim Rural Bank merges with Gomoaman Community Bank

Shareholders of the Akyempim Rural Bank have resolved unanimously to merge with the Gomoaman Community Bank as a result of bankruptcy.

Mr Alex Coffie, Interim Chairman of the Board of Directors of the Bank, announced this at the 30th Annual General Meeting (AGM) of the shareholders of the Bank at Gomoa Dawurampong.

He appealed to the shareholders to accept the resolution to join Gomoaman Community Bank with its headquarters at Apam to avoid facing consequences of withdrawing operational license by the Bank of Ghana(BOG).

According to the Interim Chairman, the hard decision was taken by the Board of Directors to merge with other sister banks following an emergency meeting convened by ARB APEX Bank with distressed banks in the Central region early this year.

He said it would attract investors also be able to meet the new capital requirement set out by the Bank of Ghana (BOG) by the end of 2017. The Board Chairman stated that one million Ghana Cedis Share capital required by BOG for every Rural and Community banks cannot by met due to current situation of the Bank.

It would be recalled that the old board Akyempim Rural Bank resigned en bloc per the directives from the ARB Apex Bank in August, 2015, for poor performance and negligent as directors of the Bank.

The Interim Chairman said the Bank of Ghana has warned that those Banks that were unable to meet the capital requirements shall have their licenses revoked.

Mr Coffie lamented that Akyempim Rural Bank could not boost of 50,000 Ghana Cedis share capital and it would be extremely difficult for shareholders to mobilize one million Ghana Cedis by end of the period given by Bank of Ghana.

He said the board was waiting for the completion of the merger processes initiated for the three banks Gomoa Rural Bank at Apam, Gomoa Ajumako Rural Bank at Gomoa Afransi and Eastern Gomoa Assin Rural Bank at Gomoa Dominase due to liquidity crisis.

The Interim Chairman said as reflected in 2015 accounts, the Bank’s liquidity situation is so critical that it was unable to meet even 50 Ghana Cedis withdrawal demanded by a customer.

Mr Coffie said there was an urgent need for fresh injection of funds to resuscitate the bank so that depositors whose monies are locked up in the bank could be paid gradually to build confidence.