Shareholders Seek Cut in Banks Interest Rates

CUSTOMERS AND shareholders of various banks, particularly the rural banks, have called for a review of the existing high interest rate on loans and commitment fees.

The customers contended that 12 per cent commitment charges on loans as fees are so high and did not work in the best interest of both the customer, shareholders and the guarantors.

These views were expressed at a public forum organized by the Anum Rural Bank (ARB) for customers and shareholders at the bank's educational rally at Atimpoku last week.

The customers further called on the banks to streamline the granting of loans and reducing the loan, which makes the applicants lose greatly on the offer granted.

Mr. P.E. Owusu, chairman of the Board of Directors of Anum Rural Bank, disclosed that adequate measures have already been taken to address important issues that affect the well-being of customers and shareholders.

Mr. Owusu announced that ?2.9 billion has been given out as loans to a number of customers.

He appealed to beneficiaries to repay the loans on time to enable others benefit from the exercise.

The Board chairman further announced that the Bank of Ghana (BoG) has approved Apex Bank in Accra for all rural banks in the country as its clearing house to clear their cheques and other banking transactions which hitherto were being offered by commercial banks.

Mr. Seth Okai Ntoni, manager of the bank, stated that arrangements have been put in place to ensure that prompt payment is made to customers within the next five minutes, particularly during pay-day.

Mr. Ntomi said in this regard the bank has negotiated for computers that would help easy checking of and balance of every customer to ensure rapid results.

Mr. Kwabena Adjei, a banker in Accra and board member, appealed to people in the area to patronize in the bank so as to enable it assist them in various ways.

Mr. Adjei said banks operating in the country and other parts of the world believe in honesty and sincerity, pointing out that any individual who possesses such qualities is always known by the banks and his chances of getting loans to expand his business are very easy.

The banker is optimistic that people in the bank's operating area would use the full opportunities, like customers in rural banks in the Central Region, to change their mud houses into concrete blocks, adding "a real change than the banks can do for them."