Government urged to review corporate tax rate on rural banks

The Association of Rural Banks (ARB) has called on the government to lower the corporate tax rate of rural and community banks (RCB).

Mr. Kwame Owusu Sekyere, Acting National President of the Association, who launched the appeal, said it would help build the capacity of rural and community banks to fulfill their development responsibilities in their operational areas.

He was speaking at the culmination of the celebration of the 8th National Rural Banking Week in Akyawkrom in Ejisu Municipality.

Mr Sekyere said corporate tax rate increases from 8% to 25% since 2016 have hampered the development role of banks, especially in providing basic social amenities as well as financial and material support. to individuals and institutions.

The theme of the celebration was “The Resilience of Rural and Community Banks in the Age of the COVID -19 Pandemic”.

The celebration of the annual rural banking week aims to raise awareness of the products, services and other activities of BCRs.

It also emphasizes the issues that militate in favor of realizing the full potential of the rural and community banking sector.

In addition, it gives them the necessary impetus to deliberate on issues that can improve the performance of the rural banking sector.

Mr Sekyere said rural banks have a responsibility to work with all stakeholders to provide formidable financial intermediation to rural and disadvantaged communities, where most of the country’s wealth comes from.

This would help stimulate economic initiatives and hence promote and improve the standard of living of the population.

Mr. Alex Kwasi Awuah, Acting Managing Director of ARB APEX Bank PLC, said the COVID pandemic has highlighted the fact that the business planning environment is very uncertain,

Strong action was needed to improve banks’ liquidity, as it was the cornerstone of their operations.

This could help them defeat the threats posed by FinTech organizations.

Mr. Awuah also urged the BCRs to adopt the Bank of Ghana’s new corporate governance guideline for BCRs by putting in place effective structures and mechanisms to ensure their sustainability.

Nana Afrane Okese 1V Omanhene from the traditional area of ​​Ejisu praised the BCRs for standing up when many banks were falling and urged them to continue helping to build a strong economy for the communities and the country.

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