|
District Assemblies urged to establish
rural banks
Tamale, Jan.27, GNA- District Assemblies in the three
Northern Regions have been urged to facilitate the
establishment of rural and community banks in their
districts to hasten the socio-economic development of the
districts.
The Assemblies could consider the investment made in the
facilitation of the establishment of the banks as their
equity share in the rural banks.
Alhaji Mustapha Ali Idris, Northern Regional Minister made
the call in an address read on his behalf at a training
workshop organised for accountants and managers of rural and
community banks (RCBS) in the three Northern Regions in
Tamale on Friday.
The workshop is to strengthen the internal control systems
and enhance productivity and service in the rural banks.
The workshop was organised by ADA Luxemourg, Belgian
Raiffesen Foundation, Icnfin and Felix Foundation in
collaboration with the Association of Rural Banks- North
Eastern and Western Chapters.
The first rural bank in the Northern Regions was the Naara
Bank, established in 1981; the number had since grown to 12
with eight in the Northern and Upper East Regions and four
in the Upper West Region.
Alhaji Idris said the small number of rural banks in the
three northern Regions was limiting the accessibility of the
rural communities to banking services and also hindering
government's efforts at ensuring that micro-credit
facilities were made available to women in rural enterprises
to enhance their businesses.
Alhaji Idris observed that it had become the tendency of
rural banks to open new branches in the cities to the
neglect of the rural areas where their services are most
needed and urged them to rather partner with small scale
businesses to accelerate the development of the rural
economy.
He also advised the rural banks to computerize and network
their operations to help reduce errors and fraud, adding:
"Computerization and networking will allow for more timely
data submission and more comprehensive and timely assessment
of monetary and financial sector developments".
"You must therefore position yourselves to take advantage of
networking of all rural banks under the Millennium Challenge
Account programme", he said.
Alhaji Idris told the management of rural banks to be
creative and innovative to be able to withstand the
competitive spirit and forces driving the banking industry
saying: "It is only when you are able to package your
services well, declare profits and dividend that
shareholders will be motivated to acquire more shares and
those reluctant will also find it attractive to buy shares".
He urged rural banks to intensify education on the
redenomination of the cedi to the rural communities to
enable them to understand that it was not a devaluation of
the currency.
Mr. John Asabigi, President of the North Eastern Chapter of
the Association of Rural Banks called for the cooperation of
the Regional Ministers and District Chief Executives in the
regions to help facilitate the establishment of more rural
banks to bring banking services to the door mouths of the
people.
He hoped the establishment of more banks would avoid
unnecessary rivalries and conflicts between communities.
GNA
|
