Appeal To Government To Establish Courts To Recover Loans

The Chairman of the Board of Directors of Nkoranza- Kwabre Rural Bank, has expressed dismay about the lack of commercial courts to deal with cases of litigation in loan recovery in the Brong Ahafo Region. Mr Joseph Tachie-Djan said the bank had recorded bad and doubtful debts for the past years because customers had failed to repay their loans. Addressing customers and shareholders of the bank at its Annual General Meeting at Akuma in the Nkoranza South District, Mr Tachie-Djan appealed to the government as a matter of urgency to establish such courts to help banks to recover their loans. He said due to the bad debts the bank's profit declined and affected its operations. Mr Tachie-Djan disclosed that the bank recorded a total deposit of GH¢ 1,829,896 in 2009 as against GH¢ 1,692,256 in 2008, whilst the investment portfolio increased from GH¢250,000 to GH¢ 450,000 within the period under review. The bank's stated capital increased from GH¢ 54,047 to GH¢ 88,982 whilst the total assets as at 2009 stood at GH¢ 140,829. The board chairman announced that the bank in collaboration with the Community-Based Rural Development Project had initiated tree plantation and afforestation projects at Dandwa, Atekoano, Akropong and Sikaa to help preserve water bodies in the communities. Mr Tachie-Djan said despite its numerous constraints, the bank had been supporting the communities that patronised it services in the area of development as part of its corporate responsibilities. Mr Claver Dadzie, Manager of the Sunyani branch of the Association of Rural Banks (ARB) Apex Bank Limited pleaded with the shareholders to increase their shares to help the bank to meet the demands of the Bank of Ghana's minimum share capital of GH¢ 150,000. He said the Apex bank intends to support rural banks to purchase more computers on credit basis to enhance their Information Communication and Technology competence. Mr Dadzie advised rural banks, which had not registered with viable insurance companies to do so to secure their operations. Mr Collins Offinam-Takyi, Administrator of the Regional chapter of the Association of Rural Banks commended the shareholders for being supportive to the bank in its operations. The bank awarded six outstanding customers from its various agencies with pieces of wax print for their loyalty.