Michael Wilberforce Osae, the General Manager of Amantin and Kasei Community Bank in the Bono East Region, has appealed to the Government of Ghana to give more incentives to rural and community banks (RCBs).

According to Mr Osae, this would enable Rural and Community Banks to expand financial support towards the development of agriculture and other sectors of the economy.

“In the wake of the COVID-19 pandemic, it is imperative for government to help create fiscal space for RCBs, to assist critical sectors such as agriculture and Small and Medium-scale Enterprises (SMEs.)”.
Michael Wilberforce Osae

Mr Osae made this call during the Amantin Rural Bank’s 15^th annual general meetings of shareholders at Amantin.

Banking Sector Joins Nation in Mourning After Helicopter Crash Claims 8 Lives

Fidelity Bank Ghana Relaunches ‘Sika Bumm Reloaded’ Promo to Reward Savers

BoG Pushes Banks to Expand Credit Access After Major Policy Rate Cut

In addition, the General Manager urged the government to reduce corporate tax. He indicated that “the significant increase in corporate tax from 8 per cent to 25 per cent in 2016 is taking a huge toll on performances of RCBs.”

Mr Osae Wilberforce asserted that rural banks play significant roles in development of rural communities. He pointed out that they help farmers and rural communities by granting them loans as well as supporting them in various ways to build their businesses. Meanwhile, Mr Osae stressed that rural banks can do more if the government comes in to support them.

“Rural and Community Banks are supporting farmers who cultivated cereals and tuber crops, and reared livestock and poultry. We can do more to boost the growth and development of agriculture and other businesses, if the government can give us more incentives.”
Michael Wilberforce Osae

Dr John Oduro Boateng, Board Chairman of Amantin and Kasei Community Bank, addressing shareholders, declared that despite operational challenges in 2019 and 2020 financial years, the bank made impressive strides.

The Board Chairman revealed that the bank recorded 267.84 percent growth in profit-after-tax from a loss of GH¢540,609 in 2019 to GH¢907,351, in 2020.

Dr Boateng noted that total deposits went up from GH¢29,395,267 to GH¢44,530,023, representing 51.49 percent growth, while investment also soared by 63.09 percent, jumping from GH¢10,144,294 to GH¢16,544,294 in 2020.

He further disclosed that the bank’s total assets grew from GH¢34,768,158 in 2019 to GH¢49,441,566, in 2020.

Meanwhile, Dr Boateng indicated that during the period under review, the bank increased its short term investment portfolio by 63.09 percent, up from GH¢10,144,294 to GH¢16,544,294.

The Board Chairman asserted that the bank has closed the 2020 financial year with a stated capital of GH¢1,521,546 as against the industry’s threshold of GH¢1 million.

Dr Boateng believed that the bank is in a good position to meet all the regulatory requirements and adhere to the new policy directions of the Bank of Ghana.

Conversely, the Acting Managing Director of ARB Apex Bank, Alex Kwasi Awuah, has advised Rural and Community Banks to initiate measures to check poor credit mismanagement. He expects the move to help banks avoid running into liquidity challenges whilst enabling them improve their profit margins.

Conclusively, Mr Awuah asked RCBs to institute operational control structures and strict adherence to banking rules to curb banking fraud.