The Bank of Ghana (BOG) has revised its directive on share acquisition in rural banks by individuals and institutions from 10 percent and 30 percent to 20 percent and 50 percent respectively.

Mr S Thompson Essel, Deputy Chief Manager, Banking Supervision Department of BOG, announced this at the 18th Annual General meeting of the Asutifi Rural Bank at Acherensua in the Brong-Ahafo Region at the weekend.

He explained that the new directive was to enable rural banks to meet the required minimum capital base of 100 million cedis and provide adequate cushion to withstand losses as a result of rising cost of operations.

Mr Essel noted that the achievements of the banks were measured by their services and efforts in inculcating banking habits in people living in rural areas.

He charged Directors, Managements and staff to operate within the rules and regulations of the Central Bank.

Mr Essel asked rural banks to take concerns raised by external auditors and in BOG's examination and surveillance reports seriously and to implement them promptly.

The Central Bank would continue to implement policies aimed at restructuring, promoting the human resource capacity and sourcing on-lending facilities to strengthen the capital base of rural banks.

"The BOG will also ensure the development and growth of efficient rural banks as integral part of a vibrant banking system to form the bedrock for sustainable economic development to improve the living standards of people in rural communities".

Mr Nicholas Nsiah-Agyapong, District Chief Executive, said the government would pursue policies to encourage greater mobilisation of funds outside the banking system and encourage the establishment of new and foreign financial institutions to improve efficiency and the range of services.

Dr Yaw Opoku-Afriyie, Chairman of the Board of Directors, said the decline of the Bank had been arrested through critical supervision and control of expenditure.

He said the Bank "even broke even last year" and turned a loss of 15.5 million cedis in 2000 into a modest gain of 1.5 million cedis in 2001 and further increased it to 6.2 million cedis as at the end of October this year.

Dr. Opoku-Afriyie said the cash and other balances of the Bank also grew by 162 percent from 55 million cedis in 2000 to 209.4 million cedis in 2002.

He appealed to the Bank of Ghana to support rural banks with operational machinery to enable them discharge their roles efficiently.