GAPNEWS

RCBs must brace for banking sector purge

Togbe Afede XIV

Togbe Afede XIV, Agbogbomefia of Asogli State and Board Chairman of the National Investment Bank has called on Rural and Community Banks in the country to brace themselves up for a possible clean-up of the rural banking sector.

He said it was crucial that the ARB Apex Bank provided timely signals to RCBs to prevent shockwaves associated with financial tremor.

“As RCBs, let us try to put our houses in order even as the regulators continue to tidy up the universal banking sector. Let us continue to strive to become better because as the dust begins to settle on the Universal Banks, the Regulators would start to shift their torchlight on the RCBs, and when we are not ready, we shall be caught unawares”, Togbe Afede stated.

He said this in a speech read on his behalf at Apex Bank’s 17th Annual Managers Conference in Ho, which was on the theme: "Rendering Service with Passion; a Panacea for Competitive Advantage."

Togbe Afede entreated Chief Executives, and General Managers of RCBs to let their work be guided by transparency because their decision had strong bearings on the improvement of governance systems at the Banks.

He said network of RCBs was a “unique” attraction to investors eyeing business opportunities in peri-urban areas, and that they must eliminate internal competition, and foster greater collaboration with Apex towards growth.

“In fact if all RCBs should work together, they could become a greater force to reckon with as the Universal Banks operate as disparate entities, competing and foraging for the same business space. It is also essential to note that competition amongst sister RCBs is inimical to the growth and expansion of the sub-sector”, he said.

Togbe Afede commended Apex’s robust Information and Communication Technology platform, and encouraged RCBs to utilise it for common good.

He also praised Apex for introducing the Agency Banking Model, saying it would help expand its reach nationwide, increase financial inclusion, and enhance livelihoods by creating lots of small businesses.

Mr Kojo Mattah, Managing Director of ARB Apex said the Bank was going through a restructuring process to reposition it to better serve and remain a dominant force in the rural financing sector.

He said as part of the restructuring, seasoned consultants had been engaged to equip executives with contemporary strategies, and its staff stock had been replenished with experienced hands, expected to boost its operations.

GNA

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