Bonzali Rural Bank AGM: RCBs urged to strengthen credit risk management

By Samuel Sam

Bonzali Rural Bank (BRB) PLC has held its 14th Annual General Meeting, with a call on Rural and Community Banks (RCBs) to adopt more robust credit risk management systems to withstand current macroeconomic challenges and support the growth of small and medium enterprises (SMEs).

Stakeholders urged RCBs to expand their loan portfolios, enhance credit monitoring, introduce early-warning systems and improve loan recoveries. Strengthening discipline in group lending, they said, would be essential to sustaining business operations.

They also emphasised the need for stronger digital financial solutions and diversified income sources to maintain long-term profitability. A well-diversified loan book, they noted, remains key to steady interest income and improved financial performance.

Speaking on behalf of the Managing Director of ARB Apex Bank, Alex Kwasi Awuah, the Tamale Branch Manager, Pius Abapol, commended BRB for its strong performance. He highlighted the bank’s 1,334 active groups and over 15,000 group loans as evidence of its commitment to community-focused banking.

He noted that BRB’s internal controls and governance structures remain sound, with auditors issuing a clean report. He further welcomed the bank’s planned issuance of 6.4 million ordinary shares, urging the board to communicate the benefits clearly to shareholders.

Mr. Awuah said BRB’s 2024 performance shows steady growth and deeper impact across the Northern Region. He encouraged management to strengthen capital levels, expand the loan portfolio and enhance its digital footprint to better serve rural communities.

Northern Regional Minister Ali Adolf John praised BRB for supporting SMEs and smallholder farmers, noting its contribution to reducing rural poverty. He said rural banks play a critical role in promoting financial inclusion and rural economic development.

The Paramount Chief of Kumbungu, Naa Alhaji Iddrisu Abu (Yab Kumbun Naa Yiri II), called on government and the private sector to support BRB to expand its services to SMEs and farmers, arguing that such support would help reduce unemployment and curb youth migration.

Chief Executive Officer of BRB PLC, Dr. Augustine Ngmentomo Beakana, said the bank’s strong community relationships have enabled it to open eleven branches in the Northern Region, with plans to expand further.

He noted that BRB improved its ranking in the ARB Apex Bank performance ratings, moving to 46th position out of 147 rural banks nationwide in 2024.

He reaffirmed the bank’s commitment to maintaining its dominance in the rural banking sector and contributing to national development.

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