Mr. J.B. Clottey, head of the Banking Supervision of the Bank of Ghana has called on commercial banks to respond positively to the prudent fiscal and monetary policies put in place since the beginning of this year by lowering their lending rates and other charges.

Mr. Clottey said by doing this the banks will be making capital available to the private sector for expansion.

According to him unless funds are allowed to move freely from economic agents which lack investment opportunities to those units with opportunities, but lack the financial resources to implement them the economy would not function efficiently.

Mr. Clottey made these observation at the commissioning of the Kantamanto Agency of the Trust Bank Limited on Wednesday.

Mr. Clottey noted that the financial system in Ghana has become so vibrant and competitive thus, compelling institutions to offer a wide range of new financial services and products to their clientele.

He remaindered financial institutions that those which remain static would be overtaken by other competitors.

He pointed out that a vital area that needs serious attention by banks and financial intermediaries is the efficient credit administration.

"In fact, there is an urgent need for banks to streamline their credit delivery system and strengthen credit administration, particularly, credit monitoring and recovery."

This measure, he said, would not only avert the pre-FINSAP situation for banks, but also facilitate the creation of more employment.

He appealed to banks and non-bank financial institutions to adopt aggressive deposit mobilization policies to help channel idle funds in banking systems to facilitate the effectiveness of the austerity measures and enhance credit delivery to viable productive ventures.

He further urged banks to open new branches with improved banking facilities and innovative products in the rural and remote parts of the country.

This in his view would help mop up the excess liquidity and facilitate comprehensive and balanced development of the country.

Whiles admitting the positive effects of electronic banking in the last few years through computerisation, networking, Internet banking, debit and credit card, he advised management and staff of banks and other financial institutions to be wary of the draw backs computerisation.

"It is imperative therefore, that banks and financial institution exercise circumspection and put in place, sufficient systems of effective internal controls to reduce the impact of these problems.."

He is confident that the location of the Trust Bank agency in Kantamanto, the nerve of commercial business within Accra could pave the way for the bank to assist the Central Bank in educating customers and the public on the need to handle currency properly. On his part, Mr. Alexander Awuku, Chairman of the board of directors of the Trust Bank said that it was the avowed aim of the bank to assist in nurturing small and medium scale enterprises to blossom into large corporate entities. This, in his view will support the government's policy of the Golden Age of Business.

The Accra Metropolitan Chief Executive Mr. Solomon Darko, appealed to the bank to either sponsor or partner the Accra Metropolitan Assembly (AM) in some of its project. He lamented the unorthodox practices that have characterized the banking system which have discouraged many people from saving in the banks.