Financial sector reforms worth praising – DailyGuide network

Mrs. Felicia Aba Dawood

Financial sector reforms have been largely successful in improving financial development and expanding the size and diversity of the banking sector, says Felecia Aba Dawood, CEO of Lower Pra Rural Bank in Shama.

She stated that since the introduction of financial sector reforms, banks had made significant profits from investments in government securities and Bank of Ghana (BoG) securities until the introduction of the National Debt Exchange Program (DDEP).

Mrs. Aba Dawood revealed this at the 36th edition^vol The Ordinary General Meeting of the Bank takes place on Saturday.

She mentioned some specific policy reforms that improved banks’ performance, such as liberalizing interest rates, removing control over credit allocation and transferring non-performing assets to the Non-Performing Asset Recovery Fund.

She emphasized that modern technology and digitalization are the driving force of today’s banking and that the banking sector is being prepared for the tasks it faces.

“Electronic banking, i.e. electronic banking, is being introduced throughout the country to handle banking transactions,” she said.

She said as part of the changes in the banking sector, the minimum capital of rural and community banks has been moved from GH¢400,000.00 to GH¢1 million.

She also told shareholders that Lower Pra Rural Bank had exceeded the minimum capital of GH¢1 million.

She mentioned that during the period under review, the bank’s total deposits increased from GH¢183.89 million in 2022 to GH¢236.1 million in 2023, an increase of 28%.

She said the bank offered loans to its numerous customers in the form of various loans, group loans, loans to salaried employees, overdrafts, consumer goods and loans for vehicles and buildings.

“Advances outstanding under our lending program in 2023 totaled GH¢101.7 million compared to GH¢93.42 million in 2022, an increase of 9%,” she added.

Mrs. Aba Dawood mentioned that the bank is making unrelenting efforts to recover all the advances, as a result of which some recalcitrant loan defaulters have been taken to court.

She added that the bank constantly implements a prudent investment policy aimed at maximizing the return on own funds.

She said total investment in near-cash securities as at December 31, 2023 was GH¢110.3 million compared to GH¢67.6 million in 2022, an increase of 93%.

She disclosed that the bank’s total assets as at December 31, 2023 stood at GH¢255.9 million compared to GH¢201.9 million in 2022, an increase of 26.75%, adding: “The increase in total assets is consistent with the bank’s sustainable growth pricing policy.

The bank’s outgoing CEO, Isaac Kwamina Afful, said the bank’s interest was his priority and he was working hard to help reduce credit risk and eliminate fraud.

From Emmanuel Opoku, Takoradi