Nsawam (Eastern Region), 23rd April

Mr K.S. Osei-Bonsu of the Banking Supervision Division of the Bank of Ghana (BOG), has described rural banks as the main agents for mobilising resources for economic growth. He was opening the Nsawam agency of the Akuapem Rural Bank Limited at Nsawam on Thursday.

Mr Osei-Bonsu said the banking system was undergoing fundamental changes with new challenges and opportunities are being created on a daily basis in the domestic market which is characterised by competition. He reiterated the need for deposit mobilisation by the rural banks, stressing that the economy has remained a cash based one with a lot of currency outside the banking system.

This phenomenon shows that there is room for banks to mobilise deposits and be effective vehicles to promote savings for economic growth. The BOG, he said, would encourage banks to adopt savings mobilisation measures to increase national savings for investment.

The chairperson of the Board of Directors of the bank, Dr (Mrs) Gloria Nikoi, said the bank with 1,280 shareholders has a share capital of 56.2 million cedis. It has also mobilised a total of six million cedis from the Nsawam agency since its operations began last November. Mrs Nikoi said the bank, through a variety of loans and overdrafts, has helped a number of entrepreneurs to improve their production and incomes. "The bank's mission is to demystify banking, develop the banking culture and make banking part and parcel of everyday life of the people on the Akwapim Ridge", she said.