The Bank of Ghana is urging banks to be careful in the administration of credit and the opening of new branches as these have implications on their efficiency and profitability. Assistant Director of Banking Supervision, Philip Cobbinah, made the comments at the commissioning of the Spintex branch of SG-SSB, in what could be a veiled reference to the rather high operational costs the banks blame for the high interest rates they charge. The branch is the first in a series of compact branch models to be introduced, small enough to fit into places that are convenient and accessible and offering the most basic of services. Mr. Cobbinah says global events dictate that banks manage their risks more efficiently. “Banks need to do proper credit appraisal taking cognizance of the development on the global scale and other important areas for closer watch is branch expansion. Banks need to deploy competent and effective risk management personnel and strategies to mitigate associated business risks,” he said. He said the central bank wants to see a lot more cooperation from the banks to ensure the effective functioning of the credit reference bureau. Source: Joy Business/Myjoyonline.com/Ghana