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Channel all statutory funds to us-rural banks appeal


Liquidity has been identified as one of the major challenges facing rural banks in the northern region. The rural banks say it is affecting their operations in their quest to providing banking service to the rural people and appealed to government to help address the problem.

The rural banks are also calling on government to channel all statutory funds such as the district assembly common fund into the rural banks.

President of Northern Region Rural Banks’ Association, Naa Daniel Kolibila stated this at the inauguration of the Bonzali rural bank branch in Sang in the Mion district of the northern region.

Naa Daniel Kolibila urged management of Bonzali rural bank to continue their hard work as one of the best rural banks in the northern region in providing access and quality banking service to the rural folks. Out of the 16 rural banks in the northern region, only 7 are effective.

This, he said, is a worrying phenomenon. He said the economy instability affected rural banks in Ghana adding the  rural banks  main constraint is liquidity.

According to Naa Kolibila, most of the district assemblies are shying away from the rural banks and that the  assemblies’ common funds are still  not lodged in the banks.

 The banking industry, he observed, is becoming very competitive and also very sophiscated hence, the need to educate shareholders for effective banking. Ghana has over one hundred and thirty rural banks and only 16 exist in the whole of northern Ghana.

The president also appealed to northerners both in the south and in the diaspora to come and save in the rural banks. The major challenge facing the bonzali and other rural banks in the northern region is the lukewarm attitude towards saving.

 The General Manager of Bonzali Rural Bank, Paul Atsu Fiawoo told Zaa News the people in the region believe in saving on animals or keeping their farm produce and sell them as and when they want instead of saving in the banks.

On the recovery of loans, the bank lends to farmers and other clients, Mr Atsu said the recovery rate is within the industry bench mark of 2 to 5 percent bad loan level.

 The Sang branch brings to 13 the number of branches of Bonzali in the northern region after it has opened Cheriponi branch on Wednesday.




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