Sekyere Rural Bank records GH¢2.1m stated capital …exceeds regulator’s threshold by 110%

Francis Denteh, Board Chairman

The Sekyere Rural Bank Limited at Jamasi in the Sekyere South district of Ashanti Region has

recorded a little over GH¢2.1million as total share capital as at close of business on 31st July 2019.

The amount, which exceeds the Bank of Ghana’s minimum threshold, is about 110% more than the minimum GH¢1million mandated by all rural banks to achieve by February 2020.

The bank has recorded consistent growth in its stated capital since 2017 to date, and has been mindful of making a conscious effort to grow its capital.

By this, the board and management have taken the opportunity to appreciate shareholders of the bank for their essential contribution in capitalising it to be positioned so as to confront any liquidity challenges.

The Ag. General Manager of the bank, Michael Aidoo, tells Business & Financial Times in an exclusive interview that the growth in stated capital is because of outstanding operational performances over the years, coupled with attractive dividends the shareholders have enjoyed.

Mr. Aidoo also said that another fundamental reason for growth in the bank’s stated capital is the relatively low price per share coupled with aggressive share mobilisation exercises, and the confidence the public has in the bank.

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Furthermore, he has seen some considerable growth in the bank’s deposits recently, which is an indication of customers’ confidence in the bank.

The bank’s directors say they are determined to grow its minimum share capital to GH¢5million by December 2022, to avoid any unfortunate situation as has happened recently in the banking industry and also stand ready for any regulatory shocks in the area of capital requirement, which has been the regulator’s major concern in recent times.

Sekyere Rural Bank currently has an asset base of GH¢ 95.8million, with deposits of a little over GH¢83.3million as at July 31, 2019.

The bank currently operates nine branches scattered within the Kumasi Metropolis and its adjoining districts. They are Jamase, Agona, Ntonso, Mampongteng and Ahwiaa. The rest are Abrepo Junction, Kronom, Afrancho and Dr. Mensah.

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