ARB APEX BANK APPEALS FOR CALM

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The ARB Apex Bank has pleaded for calm among Rural and Community Banks across the country in the face of what they say is an unbearable increase in the Corporate Tax government is charging them. 

Following the enactment of the Income Tax Act of 2015, Act 896, Corporate Tax chargeable on the gross profit of Rural Banks has been increased from eight per cent to 25 per cent. 

This, the Rural Banks consider to be unbearable, since it could have serious negative consequences on their businesses. 

However, the Deputy Managing Director of the ARB Apex Bank, Alex Akowuah, has asked the Rural Banks to be calm as the Apex Bank and the Association of Rural Banks are engaged in talks with the Ministry of Finance to reconsider the increase. 

Mr. Akowuah made the plea at the 28th Annual General Meeting of the Nwabiagya Rural Bank at Barekese in the Atwima Nwabiagya district of Ashanti. 

The Deputy ARB Apex Bank Managing Director also raised issues with a new risk identified in the Rural and Community banking sector which if not checked now, could lead to a serious crisis in the sector in the future. 

According to him, in their attempts to diversify their investment, a number of these banks are investing huge sums of their funds in a few non-banking organizations saying this must be reconsidered considering what has bedeviled the micro finance industry. 

 Mr. Akowuah asked the Rural Banks to balance their competing interest against profit so as to remain competitive. He advised the banks also to peer review themselves so as to reduce any risk that could have a rippling effect on their industry. 

The Acting Ashanti Regional President of the Association of Rural Banks, Patrick Owusu, reminded government of the crucial role rural and community banks continue to play as its development partners. 

According to Mr. Owusu, Rural and Community Banks remain key in rural development apart from bringing financial services closer to the rural communities, these banks are also financing critical social projects saying that the industry currently employs about four thousand people in the Ashanti region alone.

 It is for these and other important factors that the government must review downwards the increase in the Corporate Tax to enable these banks to remain in business.


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