Tumu (U/W), Dec. 22, GNA - Mr. Mahmud Khalid, the Upper West Regional Minister, has said lack of savings was a major challenge to the growth and development of businesses in rural communities.

"If our businesses are to grow whether small or medium scale, it is imperative we cultivate the habit of savings as part of our daily life". He said it was only when people developed the habit of savings in the banks that they could access credits and other financial support from the banks to grow their businesses.

Mr. Khalid said this in a speech read on his behalf during the Second Annual Ge neral Meeting of shareholders of the Sissala Rural Bank held at Tumu. He urged the bank to intensify its mobile banking activities and encourage the people to develop the spirit of savings. The Minister said a combination of prudent financial management and fiscal discipline exhibited by government had so far resulted in significant macro economic achievements including the lowering of the inflation rate to about 16.9 per cent and halting the depreciation of the cedi against the dollar.

Government would continue to pursue its "better Ghana" agenda by engaging in strengthening the Rural Enterprising Project, Community Based Rural Development Project, and Social Investment Fund and to create other viable micro economic interventions. Mr. Anthony Kunawie, Board Chairman of the Sissala Rural Bank, said the bank's deposits grew at a rate of 56 per cent showing an increase from 378, 221.00 Ghana cedis in 2007 to 589,630.00 Ghana cedis in 2008

The bank increased its loans disbursement to its customers by 31 per cent from 405,422.00 Ghana cedis in 2007 to 534,421.00 Ghana cedis and made a profit of about 13,327.00 Ghana cedis in the year under review.

He said beneficiaries of the loans cut across various sectors of the economy including agriculture, commerce, cottage industries and transport. The bank, he said, would in the near future begin to provide support in education, health and sports as part of its social responsibility.

Mrs. Alijata Sulemana, Sissala East District Chief Executive, said the success of a rural bank should not be measured by the profit it makes but by its sensitivity and readiness to address the needs of its customers and the rural poor.

"The concept of rural banking places greater emphasis on social responsibility rather than maximizing profitability in its operational area", she noted.

The DCE, therefore, urged the Board and Management of the bank to cast the net of their social responsibility wider to impact on the lives of many people who were living in deprived conditions.

She said government or the District Assembly alone could not meet the many competing developmental demands of the people and there was the need for rural banks to support the communities they operated in. Mrs. Sulemana called on the bank to sensitize the people on the need to cultivate the culture of savings and recruit more staff to enable them render effective and efficient service to the people.

She commended the Board and the Management of the bank for the successes chalked so far and urged them to continue to do more to create an environment where the people's businesses would grow well without many challenges.

Mr. Abdul Raheem Iddi-Puyo, the Wa Branch Manager of ARB Apex Bank, said the Sissala Rural Bank was one of the best rural banks in the country and urged the shareholders and the District Assembly to support the bank.