The Ashanti Chapter President of the Association of Rural Bank who is also the Board Chairman of Atwima Kwanwoma Rural Bank at Pakyi No2 near Kumasi, Mr Patrick Owusu has said the word ‘rural’ attached to the name “rural bank” should not be a stigma.
According to him, rural banks have been supporting the developments at the grassroots level, created thousands of jobs, supported community development through various means of corporate social responsibilities and above all paid very attractive dividend to shareholders and offered scholarship to children of shareholders who meet the selection criteria..
The Ashanti Chapter President of the Association Rural Banks has reiterated the need for shareholders of RCBs to be proud owners of rural banks because the perception out there that stigmatizes the operations of rural banks and rural banking is not the reality.
He mentioned the recent fold ups and takeovers as well as the insolvencies that hit the banking industry, and said not even one of such unfortunate incident, has been recorded in the rural banking industry. This he said is a positive indication that rural banks are doing well and the ‘rural’ attached to the name is just a regulator’s description and not in any negative sense.
“We operate from the trenches and take deposits from very low income earners, where the big banks find very unattractive, manage these funds prudently so that we can make good profits and pay attractive dividend to you our cherished shareholders”, he stressed.
He has therefore reiterated the pleading with government to consider reducing the 25% tax rate which is eating into their budget for community development and social support commitments.
Mr Patrick Owusu made these comments at the 28th Annual General Meeting of the Adansi Rural Bank at Fomena in the Adansi North District of Ashanti Region recently.
He has commended the board and management of the bank for the sterling operational performance, recording growth in all the indicators, bagging GHS2.7million profit before tax and increasing dividend by 150% in the 2017 year under review
He hinted that the regulator of the industry is cleaning the “house” and so it is very necessary for management to uphold compliance and the shareholders buying more shares to stand ready any time the regulator announces new minimum capital requirement.
However, the chief of Adansi, Opagyakowere Bonsra Afriyie II has charged Adansi Rural Bank to increase the percentage of loans to their customers in the Agricultural and cottage industry since it the main stay of the people of Adansi.
The Adansihene has drawn the attention of the board and management to the recent happenings of takeovers and insolvent challenges in the industry and has advised the board to do all it could to protect depositors’ money. He is also urging the government to introduce the depositors’ insurance and consider the introduction of fraud insurance as well.