The President of the National Association of Rural Banks, Ghana, His Worship Eric Danning, is strongly advocating for the release of the locked-up funds of Rural and Community Banks (RCBs), which currently total approximately GH₵500 million.

His demand comes in the wake of the recent disbursement of about GH₵1.7 billion to individuals affected by the financial sector cleanup, facilitated by GCB.

Danning expressed frustration over the exclusion of RCBs from the repayment agreements by the Ministry of Finance and the Bank of Ghana. He emphasized that releasing the locked-up funds would significantly impact the operations of the 147 RCBs across the country.

Speaking at the 23rd Annual Conference of CEOs of Rural and Community Banks at the Volta Serene Hotel in Ho on Thursday, October 17, 2024, Danning urged the Ministry of Finance and the Bank of Ghana to prioritize the inclusion of RCBs in the repayment arrangements to ensure they receive their share of the locked-up capital.

"Additionally, I request a clear timeline for the disbursement of funds to provide much-needed relief to the struggling RCBs," he stated. "We would appreciate your assistance in releasing these funds to aid distressed RCBs and in providing concessional facilities through the ARB APEX Bank for the acquisition of recommended armored vehicles to enhance operational efficiency and security at all RCBs.

This will not only benefit RCB operations but also contribute to the overall stability and growth of the financial sector."

Danning further noted, "It is an indisputable fact that RCBs, despite the challenges posed by these locked-up funds, may be unable to publicly demonstrate their difficulties. However, if this issue is not resolved, and the funds belonging to our valued customers are not released, it is likely that consumers may take matters into their own hands, with uncertain consequences. As the saying goes, 'A stitch in time saves nine.'"

Source: https://www.modernghana.com/