The Brong Ahafo Regional Chapter of the Association of Rural Banks has raised a red-flag over the astronomical charges and costs originating from the computerisation and use of ARB Apex Bank software-Teminos 24 (T24); the chapter laments that the charges are taking huge tolls on the finances of its members.
According to the Chapter, the high computerisation cost and software charges have compounded the ailing general economic environment of doing business, which presents a massive threat to the survival of some rural and community banks (RCBs) in the region.
Mr. Joseph Tachie-Djan, Brong Ahafo Regional Chapter President, made these remarks at the 5th Edition of the Rural Banking Week Celebration’s climax recently held at Wenchi.
He said the banking climate in the region has been damaged by activities of some ‘Ponzi schemes’, and any further operational inconveniences will be destructive to the banks.
He noted that the topical challenges engulfing the banking and financial sector has a tendency to kill the already low banking culture in the region, adding that the development should therefore be a wake-up call for RCBs to take a second look at their deposit rates.
“The deposits which were mobilised by the Ponzi schemes during this relatively short period is ample confirmation that there are huge funds in the hands of the public outside the banking system; it behoves banks to re-strategise to attract such monies,” he said.
On the side of the Bank of Ghana, Mr. Tachie-Djan observed that it could have done more to save the situation.
“Granted that we operate a liberal economy, detection and prevention of anti-money laundering put some responsibilities on the government to set up its intelligence gathering within the banking industry.”
He stated that the unpleasant banking episode, coupled with other pressing challenges have inundated RCBs in Brong Ahafo and therefore appealed to the ARB Apex Bank to consider financial bailouts for some selected banks in the region to prevent their imminent collapse, saying: “The Apex bank can adopt an approach similar to that it used to identify friends in the Central Chapter, which are currently benefitting from financial bailout package.”
He however re-emphasised the need for RCBs in the region to explore other innovative ways of generating enough funds to meet their ever-growing cost of operations and pay dividend to shareholders.