The head of Banking Supervision Department of Bank of Ghana (BoG), Mr. Joseph B. Clottey, has asked rural banks to focus their operations on the promotion of financial intermediation in the rural communities.

He said the reneging tendency has been for some banks in their desire to maintain the so-called big customers to grant substantial credit to few urban businessmen at the neglect of main purpose rural banking.

Clottey made these known in a speech delivered at the 14th Annual General Meeting (AGM) of the Bogoso Area Rural Bank (BARB) at Bogoso in the Wassa West District of the Western Region.

He observed that more often than not such facilities become delinquent and pose liquidity problems.

Clottey, therefore, advised rural banks to rather focus their main operations predominantly on economic and social needs of customers in the rural communities.

He noted that the operations of BARB for the first half of 2001 revealed that advances increased significantly by ?770.31 million. Investment in Treasury bills also surged from ?1,872.0 million or 17.5%.

He was full of praise that shareholders funds appreciated substantially by 36.73 million or 60% to a level of ?892.21 million which was financial by paid-up capital of ?68.93 million and profit of ?267.82 million.

Clottey cautioned that BoG would continue to exercise strict surveillance over rural banks to instil sanity and discipline into their operations.

The Head of Banking Supervision commended all those whose actions, contributions and sacrifices have nurtured the bank to assume "high ranking" in rural banking and urged the staff, Board of Directors and Management and all and sundry to sustain the interest, commitment; patronage and diverse support that the bank has enjoyed over the years.

The Chairman of the Board of Directors, Mr. George Kwesi Acheampong in his report said, in spite of the difficult times faced in 1999, the bank was able to put up a magnificent premises at Tarkwa, which is being used both as offices and accommodation for staff at a cost of ?220,886,682 million.

He said a total of ?300 million received from the Ministry of Food and Agricultural/IFAD-SUMP Project has been disbursed to 29 identifiable groups who are engaged in food roduction, processing and marketing.

Acheampong said the bank also granted a total of ?1,396,218,408.39 million to various sectors including Agriculture, Trading, Transport, Cottage Industry and others. Again, the bank increased its deposit of ?1,980,003,782.48 million between 1998 and 2000 to ?4,539,827,702.15 million an increase of ?2,559,823,919.67 million representing a percentage increase of 129.29%.

He disclosed that the bank has spent a total of ?5,850,000 million on various development projects in the socio-economic development of Bogoso and its surrounding villages.

Acheampong further disclosed that to promote excellence among the youth in education, BARB spent ?7,500,000 million as scholarship awards to 15 brilliant but needy students within the catchment area.

He added that the bank had made provision of ?100 million out of its divisible profits for payment of dividends to shareholders.

The chairman announced that the bank hope to computerise the main branch and all the agencies with modem communication gadgets by the year 2005 under its new development plan

The Wassa West District Chief Executive, Mr. Kweku Ayensu reminded defaulters of the Poverty Alleviation Fund (PAF) initiated by the former NDC government to assist beneficiaries to pay the monies granted them by the end of December or face persecution, since the loans were not to be regarded as "gifts".

Such defaulters would never be considered in future under the new ESR programme introduced by the NPP government.

The DCE, however, advised the people to embrace President Kufuor's cassava project initiative and the Golden Age of Business scheme.