Pakyi Number Two (Ashanti Region) 11 Oct 1998 The Association of Rural Banks (ARB), in collaboration with the Danish International Development Agency (DANIDA), has begun a three-year development project to enhance the operational efficiency, corporate image and profitability of rural banks.

Under the project which would be in place 1998 to 2000, rural banks would be provided with communication equipment for the effective co-ordination of their operations.

This was disclosed by Mr Eric Osei-Bonsu, Director of the ARB, at the 15th annual general meeting of shareholders of the Atwima-Kwanwoma Rural Bank at Pakyi Number Two in the Ashanti region on October 10.

The administrative, secretariat and other staff of all regional chapters of the ARB would also be strengthened through in- service training programmes under the project.

Mr Osei-Bonsu said to improve on the micro-financing activities of the rural banks towards poverty alleviation, the association is negotiating with the United Nations Development Programme (UNDP) to solicit for funds for rural banks to enhance their savings mobilisation efforts.

Six rural banks in Ashanti, Brong-Ahafo, Volta, Central, Western and Northern Regions have been targeted to begin the programme which is on a pilot basis.

The Director therefore called on the boards of directors and managements of rural banks to review their operations and ensure that they conform to the rules and regulations of the Bank of Ghana. Mr Osei-Bonsu said rural banks need to broaden rural financial operations by intensifying their efforts at mobilising savings for accelerated rural development.

Mr George Kyei Baffour, chairman of the board of directors of the bank, said it made a net profit of 88.3 million cedis after it had paid about 70 million cedis in taxes to government.

Mr Godfried Odame-Asare, Supervising Manager of the bank who reviewed its operations, said total deposits increased from 2.6 billion cedis in 1997 to 3.4 billion cedis by June, 1998, making it one of the highest deposit mobilising rural banks in the country.

He said advances to customers increased from 778.7 million cedis in 1997 to about 951 million cedis by June, this year, adding that this growing confidence and satisfactory performance of the bank had led to an increase in its ordinary share capital from 79.6 million cedis in 1997 to 99.8 million cedis by June, 1998.

Mr Odame-Asare said the bank invested 2.5 billion cedis in treasury bills, the highest in the country, and would continue to support communities within its catchment area in their development GRi