Bank of Ghana Withdraws Funds From Bangmarigu

The Bank of Ghana has recalled the unutilized funds of GH? 1,046,775.71 from the Bangmarigu Community Bank following its failure to utilize the funds which it was supposed to have been invested in treasury bills and the Apex Certificate of Deposit (ACOP).

The amount represents funds sourced for lending from the Millennium Development Authority (MiDA). Mr. John Asabigi, Board Chairman of the Bangmarigu Community Bank in the West Mamprusi District of the Northern Region, said this at the 11th Annual General meeting of Shareholders of the Bank in Walewale on Saturday.

He said as a result of the development the Banks investment in treasury bills and the ACOP dropped by 43 percent from GH? 1,174,800.00 in 2009 to GH? 668,400.00 in 2010. The repayment of the amount, he said, also accounted for a 93 percent drop in short-term borrowings from GH?1, 365,732.00 in 2009 to GH? 99,506.00 in 2010.

He said the impact of these negative trends has resulted in the fall in net interest income of 33 percent from GH? 350,227.00 in 2009 to GH? 236,216.00 in 2010, accounting for the fall in profit between the two years.

Mr Asabigi said despite these shortfalls the Bank�s performance as at 31st December, 2010 could still be described as satisfactory even though it was not as good as the previous year. He said total assets dropped from GH? 3,381,700.00 in 2009 to GH? 2,454,896.00 in 2010, representing a decline of 27 percent.

He said the Bank recorded a modest profit of GH? 37,497.00 in 2010 as compared with the 2009 high figure of GH? 176,118.00, which was a drop of 79 percent. He said the big drop in investments and the accompanying income accounted for the decline in the Banks profits.

Mr Asabigi said �Our main challenge in our attempt to help the productive poor out of their situation has been their negative response with regard to loan recoveries�. He appealed to beneficiaries of loans to pay their loans promptly and on schedule for the bank to stay in business, saying �otherwise your bank will be liquidated by the Bank of Ghana�.

Mr Success Aduamah, Branch Manager of the Bolgantanga Apex Bank Limited, appealed to Rural Commercial Banks (RCBs) to restructure the operations in the area of migration from manual operation to embracing information and communication Technology (ICT) with special attention to creating desks for share registry management, accounts or transaction reconciliation, micro finance, research and marketing as well as administration.

Source: GNA