Should Dagbon be divided to create the Eastern Corridor Region?
Yes
No
Only if Yendi is Capital City
view results

Mamprusi Bank Warns Loan Defaulters


2006-11-21 22:08:03
This article has been read 812 times.

AS MOST rural banks continue to collapse in Ghana, the Chairman of Board of Directors of the West Mamprusi Community Bank (WMCB), Mr. John Asabigi in salvaging the image of this fragile institution, has emphasized that the Board was prepared to apply all legal forces against the numerous loan defaulters of the Bank without fear or favour. According to the Board Chairman, loan beneficiaries of the Bank had perceived the loans granted by the Bank as gifts and thus, not ready to repay for others to benefit or to keep the Bank running.

Delivering the Board of Directors’ report at the 6th Annual General Meeting (AGM) of the West Mamprusi Community Bank in Walewale, Mr. Asabigi disclosed that the bad attitude of loan beneficiaries had compelled Bank of Ghana to place an indefinite embargo on all commercial lending or granting of loans and overdrafts to customers.

The Bank was therefore tasked to recover its outstanding loans amounting to ¢ 5 billion to redeem the young Bank from financial crisis and possible collapse. “A bank lending without recovery can be compared to a manufacturer who is producing items or goods without selling. Just as the manufacturer may not have raw materials to produce further goods, the Bank may not also have actual money to lend,” Mr. Asabigi said.

Meanwhile, the West Mumprusi Community Bank for some years now, has gone through serious financial and management crisis, which nearly resulted in its collapse. However the re-constitution of a six member Board of Directors led by Mr. John Asabigi who is currently holding two enviable positions as the President of the Association of Rural Banks in Northern and Upper East Regions and District Finance and Administration Officer for the West Mamprusi and the appointment of Mr. John Asamoah-Akrasi as a Manager has redeemed the Bank significantly from its woes.

Currently, the Bank’s deposit liabilities have doubled from ¢ 6,189,644,000 to ¢ 12, 059, 773,000 between 2004 and 2005 through effective management. The Bank’s stated capital has also been raised from ¢ 112,101,000.00 to ¢ 548,711,000.00 between 2004 and 2005. Its net profit per accounts within 2004 and 2005 increased from ¢ 92,957,720 to 227,282,000 representing 244.5% increase; Investments capital moved from ¢1,155,000.000 to ¢ 4,070,000,000 (352.4%) while Shareholders Equity also moved from ¢ 948,511,720 to ¢ 1,225,905,000 representing 129%.

Commending the West Mamprusi District Assembly for keeping its Road Sector Fund in the Bank, the Board Chairman challenged the Assembly to channel all its Common Fund through the Bank to enable the citizenry enjoy or benefit from its fruits.

The Northern Regional Minister, Alhaji Mustapha Ali Idris urged the Board and Management of the Bank to endeavour to open more branches in other communities within and outside theRegion. He also entreated them to observe all laid down rules and regulations to ensure transparent financial administration.

Alhaji Idris passionately appealed to the public to as a matter of seriousness to adopt the culture of saving and purchasing of shares as well as honouring of loan obligations to facilitate the substantial growth of the Bank.

The District Chief Executive (DCE) for the West Mamprusi, Hon Nabla Sulemana pledged the Aassembly’s continues support to the Bank in ensuring its growth and sustainability.

The External Auditors of the Bank, RUYAN Consult (Chartered Accountants and management Consultants) led by Mr. Ibrahim Adams from Accra, disclosed in their audit report that the West Mamprusi Community Bank recorded a pre-tax profit of ¢ 251,590,000 as at December 31, 2005 as against ¢ 101,041,000 recorded in previous year, 2004, representing an increase of about 249% profit.

Meanwhile, the Bank, which was established about 12 years ago, has got a spectacular 2,068 shareholders. Following Bank of Ghana’s directive, the name of the bank, West Mamprusi Community Bank, was unanimously changed to Bangmarigu Rural Bank, whiles Messrs Sulley Zakaria and John Asabigi were elected by the meeting (Shareholders) as newly Board Chairmen of the Bank.

source: Chronicle

Latest News
Vitting SHS students ‘sleeping under trees’


Abudus withdraw from Dagbon peace talks again


Tamale residents defend Mayor as impeachment agitation gathers momentum


Two killed in ‘attack’ on Fulanis at Yendi


Tamale Mayor faces impeachment over ‘stinking’ contracts, disrespect


'Mahama Camboo' collapsing taxi business


‘Yellow-Yellow’, the ‘Uber’ of Tamale pushing taxi drivers out of busine


Buipe SHS matron arrested for stealing free SHS food


NPP youth invade police station, free suspects in Karaga


NPP youth chase DCE out of his residence


back January 2018 forward
S
MTWTF
S
123456
78910111213
14151617181920
21222324252627
28293031
-
13

currently online

2202663

visitors since Jan. 2006
Last updated: