The Managing Director of the ARB Apex Bank Limited, Mr Emmanuel Kwapong, on Saturday exhorted board of directors of the various rural banks to initiate policies aimed at enhancing the viability of the banks.

He said the most essential tool of good governance in any financial institution was “clearly the board of directors” and cautioned that the banking industry had become so sophisticated that the “slightest disturbance to the equilibrium will ward a customer off”.

Mr. Kwapong, who made the call in an address read for him, at the 21st annual general meeting of the Nyakomasi-Ahenkro rural bank, therefore urged the boards to endeavour to be ethical and well informed and to adopt the best practices within the industry.

He commended the bank for among others, increasing its deposits from GH¢447,600.00 in 2005 to GH¢601,700.00 in 2006 and loans from GH¢ 159,288.00 to GH¢320,361.00, within the same period, representing increases of 60.4% and 101.12% respectively.

Mr Kwapong said it was the expectation of the ARB Apex Bank that the bank would work hard to sustain that progress even in the face of stiff competition and continue to add value through innovation, commitment and trust.

He also touched on the need for the managements and staff of the banks to operate within the legal framework to ensure compliance and transparency and to guard against those who want to be billionaires overnight, and asked the shareholders to be interested in how the banks are run, and to offer constructive criticisms.

Mr. Kwapong reiterated the importance of the computerization process to the growth of the banks, which is to be done over three years under the Millennium Challenge Account programme, during which a Wide Area Network would also be installed to connect the rural banks to the Apex bank and the Bank of Ghana.

He announced that early next year, directors, management and staff of all rural banks would also be given orientation on the ARB Apex bank Regulations 2006, (L.I 1825) which is meant to assist the banks to solidify their operations and make them viable.

In his report, Mr Robert Kutin, board chairman, said the bank had made a steady increase in assistance towards improving economic ventures within the area, last year.

He said it was able to assist 1,271 people as against 823, the previous year, thereby disbursing an amount of GH¢390,150.00 as against GH¢163,800.00, while the number of assisted groups grew from 36 to 57.

The bank he said also made a net profit of GH¢42,052 last year as against GH¢32,406.00 the previous year, while its total assets grew from GH¢553,600 to GH¢878,017.00.

He however, noted that in view of the decline in the treasury bill discount rate, the bank’s investment increased by only 9.6%, from GH¢216,687 to GH¢239,811.00.

Mr. Kutin, announced that although shareholders approved a sitting allowance of GH¢60 for each member of the board, the board decided to reduce the amount to GH¢30 to help the bank stand on its feet.

Mr. Kutin and another member of the board, Lt Col (rtd) Nicholas Otoo who were due for retirement were unanimously re-elected.


Source: GNA