Veep task banks to facilitate food security

Tamale, May 30, GNA- Vice President Alhaji Aliu Mahama, on Friday, challenged the banks to strengthen agricultural financing in order to cushion the rising cost of grains on the international market and facilitate national food security.

He also expressed the need for financial institutions to be proactive in designing products and services that would consider the peculiar circumstances of the rural population. Vice President Mahama threw the challenge in Tamale when he inaugurated the local Business Office of the Intercontinental Bank (IBG), Ghana, which is the first facility of the Bank, outside Accra. "It is important to note that there is still a wide gap between banking services and some sections of the population. I wish to challenge the banks...and other financial intermediaries to focus their strategies to reach many more people in order to complement government efforts at job creation and poverty alleviation." Vice President Mahama noted that the gap between borrowing and savings rate in the banks remained too high and served as disincentive to small- scale borrowers. He said low interest on savings also discouraged the accumulation of capital.

Vice President Mahama tasked the IBG to maintain its links with micro and small businesses, especially farmers, traders and artisans, and expose them to new opportunities to improve on their lives. Mr Albert Mmegwa, Managing Director and Chief Executive Officer of IBG said by the end of the year 15 additional business offices would be opened nationwide. He said the vision of the bank was to be the number one financial service institution in Ghana with a strong presence in the 10 regions by 2016.

Alhaji Mustapha Ali Idris, Northern Regional Minister noted that the establishment of the bank was an indication that peace and stability was essential to facilitate investment. He noted that no bank would operate in a chaotic environment hence the need for the people to co-exist and redirect their energies to profitable ventures. Vice President Mahama was the first customer to open an account with the bank at Tamale.