The Association of Rural Banks (ARB) has appealed to the government of Ghana to review downwards the corporate tax rate of Rural and Community Banks (RCBs) in the country.
Mr Kwame Owusu Sekyere, Acting National President of the Association, made this known at the climax of the 8th National Rural Banking Week celebration under the theme: “The Resilience of Rural and Community Banks in a COVID -19 Pandemic Era”. He noted that the request, when granted, would ensure that the rural banks carry out development projects in their respective communities in which they operate.
“This would help strengthen the capacities of rural and community banks to live up to the development responsibilities in their operational areas.”
Mr Kwame Owusu Sekyere
Mr Sekyere observed that the hikes in the corporate tax rate from eight (8) percent to twenty-five (25) percent since 2016, has hampered the developmental role of the banks, especially in the provision of basic social amenities as well as financial and material support to individuals and institutions.
Touching on the importance of the celebration, Mr Sekyere explained that the annual Rural Banks’ week celebration is aimed at sensitising the public on the products, services, and other activities of the RCBs.
It also brings into focus issues that militate the realization of the full potentials of the rural and community banking industry for attention.
Additionally, it provides the impetus for them to deliberate on issues that would enhance the performance of the rural banking industry.
Mr Sekyere indicated that the rural banks have the responsibility to work with all stakeholders to provide formidable financial intermediation to rural and deprived communities, where the bulk of the nation’s wealth comes from. According to him, this would help stimulate economic initiatives and thereby, promote and enhance the standards of living of the people.
Mr Alex Kwasi Awuah, acting Managing Director for ARB APEX Bank PLC, contributing his part averred that the COVID-19 pandemic has confirmed the fact that the business planning environment is highly uncertain. He therefore, urged all managers and directors to plan ahead in order to mitigate the effects of the pandemic.
The Managing Director called for rural banks to have the needed capital flow in order to sustain the bank’s operations.
“There is the need for robust action to improve liquidity in the banks, since it is the lifeblood of their operations.”
Mr Alex Kwasi Awuah
According to him, this could help them beat the threats posed by financial technology organisations.
Mr Awuah also urged Rural and Community Banks (RCBs) to embrace the Bank of Ghana’s New Corporate Governance Directive for RCBs, by putting in place effective structures and mechanisms to ensure their sustainability.
Nana Afrane Okese IV, the Omanhene of Ejisu Traditional area also commended the Rural and Community Banks for standing on their feet when many of the banks are falling. He subsequently urged them to continue to help build a strong economy for the communities and the country.
The Omanhene expressed his appreciation to the organizers of the event and called on the bank to continue to impact the communities.
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