Students on industrial attachment and national service have become threat to Rural and Community Banks (RCBs) following reports that some hide under the internship and the service programme to defraud the banks. Mr Eric Osei-Bonsu, Managing Director of the ARB Apex Bank, the umbrella body of RCBs, said it had come to Apex's attention that these persons "find their ways in the RCBs under the pretext of being interns or national service personnel to defraud the banks by manipulating the system." He therefore cautioned RCBs to be wary of accepting students on industrial attachment and national service postings, adding "some banks have lost huge sums of monies through the manipulation of clearing by these fraudsters." Mr Osei-Bonsu disclosed this at the 25th Anniversary of Abokobi Area Rural Bank on Saturday, which coincided with the bank's Annual General Meeting at Abokobi. He also urged RCBs to thoroughly check the genuineness of these persons before accepting them as interns and national service persons. "Where they are accepted, care must be taken not to give them schedules where they can perpetuate fraud”, Mr Bonsu told the RCBs. "I would also advise all banks to exercise due diligence and cross check all huge withdrawals with paying banks and or drawers of such cheques to nip in the bud the activities of these fraudsters,” he added. Mr Osei-Bonsu stated that banking business had become very competitive and risky, cautioning RCBs to adopt effective risk management policies to identify, assess, monitor and control risks. He noted that apart from cooperative mergers to strengthen RCBs in the wake of stiff competition, one major area where the banks could develop and create a unique marketing niche is microfinance business. Mr Osei-Bonsu described RCBs as sleeping giants when it comes to engaging in microfinance business, saying, a lot more needed to be done in that area. The Board Chairman of the Abokobi Area Rural Bank, Nii Afutu Brempong II, said despite the bank's good performance with a net profit of GH¢ 87,743 in 2009, it could not declare dividends because of huge investments it made in infrastructural development. He revealed that the bank this year, opened another branch at Adenta and invested substantially in its computerization project which is currently underway. The bank’s total assets increased by 32.40 percent from GH¢ 2,411,544 in 2008 to GH¢ 3,192,542 in 2009. Stated Capital also rose slightly above Bank of Ghana's directive from GH¢156,546 in 2008 to GH¢178,356 for year 2009. Bank of Ghana's requirement for RCBs stands currently at GH¢ 150,000. The bank later rewarded the pioneer directors of the bank - those who help to establish the bank in 1985 - best performing customers and members of staff who distinguished themselves during the year. Source: GNA