Apex Bank drops interest rates on loans to RCB’s

Rural and Community Banks (RCB’s) in the country have been urged to take advantage of the 5% reduction in the interest rates on borrowings from the ARB Apex Bank to access more facilities from Apex for on-lending to deserving borrowers.

This call comes at the time ARB Apex Bank is said to have reduced the interest rates on borrowings to RCB’s from 20% and above to 15% to equal the Bank of Ghana policy rate.

The BoG policy rate at the moment remains at 15% but highly anticipated to be reviewed by close of the second quarter. While the outcome of the review cannot be confirmed at the moment, indications from some expert opinions suggest that the Bank of Ghana may increase its Policy Rate by 100 basepoints. 

Mr. Kwadwo Aye Kusi, Managing Director, ARB Apex Bank Limited in a speech read on his behalf at the 23^rd Annual General Meeting of shareholders of Adansi Rural Bank at Fomena-Adansi in the Ashanti Region noted the improvement in the performance of the Bank over the years.

He commended the Board and Management of Adansi Rural Bank for their visionary and transformational leadership which had culminated to into the gains made, and prevailed on them to consolidate the gains to serve as a motivation ‘to achieve more laurels in future’.

He prevailed on RCB’s to do more to transform their organization and operations particularly in the areas of information communication technology (ICT), effective deposit mobilization, cost control and reduction.

The Managing Director further advised for pragmatic and realistic programmes and policies to be put in place to sustain their operations.

Speaking on risk management, he noted that banking business has become very competitive and risky, and to minimize the risk, there is the need for effective risk management. Mr. Kusi therefore advised the boards of RCB’s to institute a risk management policy to identify, assess, monitor and control risks.

‘’The need for effective risk management and vigilance have become more pressing in view of the technological intervention in the operations of RCBs. Staff of RCBs are required to be extra vigilant and careful in their day-to-day operations to prevent unscrupulous fraudsters who may want to defraud RCBs by capitalizing on the lack of vigilance, poor risk management, weak internal control system and non-observation of the rules of the business,’’ he added.

RCB’s were also pointed out to improve customer services attract more customers whiles retaining existing ones as a ‘sure way’ to ensure survival in the face of increased competition.

The initiative by ARB Apex Bank to waive off the commission on Western Union Money Transfer, which took effect from April 1, 2013, to allow RCB’s to fully enjoy the commission on remittance was also reiterated.