The Bank of Ghana (BOG) Treasury Bill (TB) rate moved from 42.2 per cent in July to 29.54 per cent in November as a result of stable macroeconomic conditions, Mr. Daniel Ohene Owusu, Deputy Chief Manager, Banking Supervision Department of BOG, said in Accra.

However, this would mean that banks that invested heavily in TBs would suffer shortfalls in their projected revenue and profits.

Mr. Owusu, who was speaking at the 17th Annual General Meeting (AGM) of Shareholders of Atwima Mponua Rural Bank at Toase in the Atwima District, therefore, called on rural banks to explore other avenues of investments that would yield higher returns.

He advised the management of rural banks to strictly enforce the dictates of Poverty Alleviation Credit Schemes (PACS) and other government Credit Schemes that were aimed at promoting the development of identified sectors of the economy by way of alleviating poverty in the rural communities.

He charged rural banks to raise their paid-up capital to at least 100 million cedis, which should be attained preferably through fresh issue of shares.

Banks with substantial amount on Income Surplus Account (ISA) could transfer reasonable portion to paid-up capital by way of capitalisation issue.

He observed with concern the inadequacy of paid-up capital of most rural banks, which had made it difficult for such banks, to meet their statutory minimum capital adequacy ratio of six per cent.

The revised prescribed minimum paid-up capital for new rural banks was 500 million cedis, he said, adding that the BOG would continue to supervise rural banks regularly and provide the needed support to nurture them into becoming vibrant financial institutions.

Mr. Benjamin Bekoe Yirenkyi, Chairman of the Board of Directors of the Atwima Mponua Rural Bank, said the bank recorded an after tax profit of 86.4 million cedis last year as against 43 million cedis in 1999.

The bank's total deposits rose from 2.8 billion cedis in 1999 to 4.2 billion cedis in 2000 while the number of customers increased from 11,376 in 1999 to 15,880 last year.

Mr. Yirenkyi said the share capital of the bank rose from 28.8 million cedis in 1999 to 27.3 million cedis in December 2000 stressing that it was below BOG's requirement, which stood at 63.7 million cedis.

The bank purchases of Akuafo Cheques dropped from 2.9 billion cedis in 1999 to 2.5 billion cedis last year and attributed it to lack of funds and activities of private licensed buyers.