By Agbaxode Emmanuel, GNA
Akatsi (V/R), Nov. 01, GNA – Avenor Community Bank PLC has commissioned an ultra-modern head office building at Akatsi, marking a significant milestone in its 45-year history, while appealing to shareholders and stakeholders to support efforts to increase its capital base to meet regulatory requirements.
The bank, established and operational since May 27, 1981, said the new facility would strengthen administrative operations, improve service delivery, and provide a conducive working environment for staff, customers and business partners.
Mr Thomas Clarkson Adade, Board Chairman of the bank, said the commissioning was the culmination of years of institutional rebuilding, financial restructuring and sustained efforts to position the bank for growth.
He said the bank experienced severe financial challenges between 1996 and 2001, including declining deposits, weak lending practices, high levels of non-performing loans and liquidity constraints, which pushed the institution close to collapse.
Mr Adade attributed the bank’s revival to the intervention of the late Mr Simon Nerro Kodzo Davor, a former Board Chairman, who mobilised stakeholders and successfully appealed to the Bank of Ghana to grant the institution an opportunity to recover.
According to him, the reorganisation process, which began in 2002, restored financial stability and improved performance, with profit after tax recording an average annual growth of 22 per cent between 2005 and 2011. Net profit also grew by an average of 29 per cent annually between 2012 and 2018.
Mr Adade said the bank undertook a comprehensive clean-up of its loan portfolio between 2018 and 2023, resulting in significant improvements in asset quality and enabling it to meet applicable regulatory benchmarks by 2024.
He noted that construction of the new head office commenced in January 2025 after regulatory approvals and procurement processes had been completed in 2024.
Mr Adade, however, disclosed that the bank was yet to meet the Bank of Ghana’s directive requiring community banks to increase their stated capital from GH¢1 million to GH¢5 million by December 2026.
He, therefore, appealed to shareholders and other stakeholders to acquire additional shares to strengthen the bank’s capital base and support its long-term growth.
Mr Curtis William Brantuo, Acting Managing Director of ARB Apex Bank PLC and guest speaker at the event, said community banking in Ghana was entering a defining phase amid ongoing reforms in the microfinance sector.
He said the reforms presented an opportunity for community banks to strengthen governance systems, improve risk management, embrace technology, and build resilient institutions capable of withstanding economic pressures.
Mr Brantuo stressed that the success of the new facility would ultimately be measured by the quality of the bank’s loan portfolio, the strength of its capital, depositor confidence, effective internal controls and the convenience of services delivered to customers.
He assured the bank of ARB Apex Bank’s commitment to supporting community banks through capacity building, technical assistance, digital banking solutions, risk management, and operational support.
Togbe Dorglo Anumah VI, Paramount Chief of the Avenor Traditional Area and President of the Avenor Traditional Council, commended the bank for its contribution to the area’s socio-economic development.
He expressed satisfaction with the entrepreneurial drive of some sons and daughters of Avenor and encouraged them to intensify efforts to expand their businesses.
The Paramount Chief also assured the bank of the Traditional Council’s continued support for its operations and development initiatives.
Mr Daniel Dagba, Municipal Chief Executive for Akatsi South, urged the bank to place local economic development at the centre of its operations by extending financial support to farmers, traders, artisans, small and medium-sized enterprises and young entrepreneurs.
He said access to financial services was critical to business expansion, job creation, higher household incomes, and improved living standards.
Mr Dagba further encouraged the bank to demonstrate its commitment to community development through corporate social responsibility initiatives in education, healthcare, agriculture and skills training.
As part of the event, the bank honoured the memory of its late former Board Chairman, Mr Simon Nerro Kodzo Davor, by naming its new conference hall after him in recognition of his contributions to the institution’s recovery and growth.
Avenor Community Bank PLC, formerly known as Avenor Rural Bank Limited, began as a single-branch institution operating from rented premises near the Akatsi Police Station.
It has since expanded its operations to Dzodze, Agbozume, Aflao, Ho and Denu, with a mobilisation centre at Sogakope.
The commissioning ceremony brought together traditional authorities, representatives of financial institutions, shareholders, management and staff of the bank, as well as other stakeholders.
GNA
Edited by Maxwell Awumah/Lydia Kukua Asamoah