Odumase-Krobo, Sept 21, GNA - The First Deputy Governor of the Bank of Ghana (BOG), Mr. Emmanuel Asiedu-Mante, has asked managements of rural banks to institute strong internal control measures to forestall unsound banking practices.

He mentioned such malpractices as embezzlement of funds, granting of unauthorised credit facilities, suppression of deposits, "cross-firing", manipulation of accounts, imbalances of accounts, among others.

Mr Asiedu-Mante, who made the call at a ceremony to mark the silver jubilee anniversary of the Manya Krobo Rural Bank at Odumase-Krobo on Saturday, appealed to opinion leaders to educate their people not only to patronise community banks but also repay their loans promptly so that funds could be recycled for the benefit of others. He announced that the Bank of Ghana has directed banks to ensure that their investments in fixed assets did not result in violation of prudential requirements such as capital adequacy ratio and liquidity reserve.

They should finance such assets out of capital and reserves and not from deposits, he added.

Mr Asiedu-Mante commended the Manya Krobo Rural Bank, the fifth to be eswtablished in the country, for complying with all directives of the BOG in the acquisition of its bank building, which was inaugurated as part of the celebrations.

The Managing Director of the ARB APEX Bank limited, Mr Emmanuel K. Kwapong, asked rural banks to intensify their deposit mobilisation efforts as well as expand their credit delivery programmes to productive ventures, now that the BOG has reduced the secondary reserve requirement from 52 per cent to between 20 to 30 per cent of total deposits.

He said it was in this connection that the ARB APEX Bank had initiated various actions to improve the skills of rural banks' staff in order to reposition the banks to be able to fulfil their mandate of assisting in the development of their catchment areas.

The Eastern Regional Deputy Minister, Mr Gustav Narh-Dometey, commended the founders of the bank for their foresight in developing it to be among the top rural banks.

He advised them not to leave room for complacency, saying that the sky should be their limit.

The chairman of the Board of Directors of the bank since its founding, Mrs Elsie Sowah, recalled that the bank was established at the initiative of a small group of members of the Manya Krobo Women Association in Accra 25 years ago to help improve the socio-economic conditions of the people in the area.

She commended the men and women who served on the board, management and staff for the hard work to bring the bank to be among the top rural banks in the country.

The Bank's profile indicated a systematic rise in deposits, advances, investments and shares.

Mrs Sowah said the bank had over the years supported a number of educational development projects, including over 40 million cedis on a scholarship scheme to support 22 needy but brilliant students, including two medical students, donated to the Konor's Educational Fund and supported the annual celebration of the National Farmers Day with donations.

The Konor of Manya Krobo, Nene Sackitey, paid tribute to the directors, shareholders and staff, whose immense sacrifices brought the bank into being and reaching its current heights and assured it of the support of the people.

He unveiled a plaque and long service awards in the form of certificates, cash and sound systems were presented to 34 long-serving directors, staff and shareholders.