Audio By Carbonatix
Some Rural and Community Banks (RCBs) in the country, particularly those in the Ashanti region are appealing to government to help them retrieve their locked-up funds from some financial institutions including State Enterprises.
According to them, this has affected their Capital Adequacy Ratio (CAR) and profitability levels, though they would perform far better if their locked-up funds were released to them.
They believe the availability of these funds would help them give more loans to support farmers as well as smaller businesses in their operational territories which the universal banks usually do not do.
Consequently, this would eventually improve the economic activities in the rural areas and contribute to the well-being of the poor citizens and the nation as a whole.
The rural banks in Ghana have exhibited resilience and continue to stand the test of time and have worked in the interest of their customers and shareholders as per their legitimate mandate as banks operating in their communities and serving critical financial intermediation for significant number of the Ghanaian populace.
The Bank of Ghana that regulates the subsector of the banking industry has taken a strong stance to ensure that rural banks, as wholly indigenous bank, perform their operations efficiently, to bring financial inclusion to the members of the communities.
In this regard, RCBs have not failed to pay customers their deposits or paid investors their money whenever they fall due; even in the midst of the financial clean up and in challenging macroeconomic environment.
Indeed, none of the 145 rural banks in the country was closed down or had their license revoked by the regulator because of insolvency or any corporate governance irregularities, as reportedly happened to some of the universal banks when the banking clean-up occurred recently.
Latest Stories
-
Australia’s social media ban for children has left big tech scrambling
13 minutes -
Trump gives Nvidia green light to sell advanced AI chips to China
22 minutes -
Dozens injured after magnitude 7.5 quake strikes northern Japan
32 minutes -
Israeli climate tech company pioneers eco-friendly lime
3 hours -
Pay teacher allowances to improve student performance – Ntim Fordjour urges gov’t
4 hours -
Why Alonso’s chances of survival at Real Madrid are slim
4 hours -
Legal Green Association launches scholarship scheme for law students
5 hours -
Simon Madjie writes: Oti Region: Ghana’s emerging growth frontier
5 hours -
Cedi slips amid seasonal heat; one dollar equals GH¢12.20
5 hours -
Yirenkyi-Addo wins ‘Deloitte CEO Impact Award’
5 hours -
‘I am not weak’ says Slot, but Salah could return
5 hours -
World Bank’s new outcome bond supports clean cooking initiative in Ghana
5 hours -
NACOC nabs 3 in connection with 1,158kg suspected cocaine shipment to Belgium
6 hours -
‘Certiorari is not stay of execution’: Amaliba defends Parliament’s notification on Kpandai vacancy
6 hours -
Sister Sandy set to host Medikal’s BYK Concert at the Accra Sports Stadium
6 hours
