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The ARB Apex Bank Limited has called on Rural and Community Banks (RCBs) to form strategic alliances to enable them to stay in competitive business. This has become necessary due to the changing scene of the banking terrain, Mr Richard Mettle Addo, Head of Research, Marketing and Corporate Affairs Department of the ARB Bank has said. He was speaking on behalf of the Managing Director, Mr Eric Osei-Bonsu, at the 23rd Annual General Meeting of Shareholders of the Kwaebibirem Rural Bank at Asuom. Mr Addo said the ARB Apex Bank would come up with the criteria to be agreed upon by the banks so that the weaker ones would be strengthened through the mergers. He said with the mergers their capital and deposits could be significantly boosted and their capacity to support worthy ventures would also be enhanced. Mr Addo promised that banks entering into mergers would receive financial assistance. Throwing some light on the Bank's performance at the end of the first half of this year, he said the Bank's paid up capital was GH� 154,944.32, placing 53 out of the 130 rural banks nation-wide and 11 out of the 21 in the Eastern Region. Mr Addo said the Bank's net profit was GH� 604,089.61, placing 37 in national position and 11th in the region. The Bank's total assets was GH� 4,150,876.89, placing 49th in nationwide and 12th in the region with total deposits being GH� 2,712,482.90, making it 47th nation wide and 10th in the region. On loans and advances, Mr Addo said GH� 1,327,052.57 were given out placing the Bank 60th nation-wide and 12th in the region and on short term in investment, the bank made GH� 1,167,159.7, making it 40th nationwide and sixth in the region. The Chairman of the Board of Directors of the Bank, Mr S.Y. Apeatu, said in spite of the negative economic factors that confronted the Bank, it continued to deliver strong financial results and remained a profitable and financially sound bank with a solid and high quality asset base. He said in order to extend more credit to its valued customers the bank's board reduced its investment in treasury bills from GH� 757,834.47 in 2007 to GH� 680,795.13 in 2008. Mr Apeatu said the total asset of the Bank rose from GH� 2,848,102.83 in 2007 to GH� to 3,542,499.37 in 2008. On loans and overdrafts, he said advances rose from GH� 1,430,881.39 in 2007 to GH� to 1,901,071.66 in the year under review, adding that the board, however, observed that some of the beneficiaries of the loans defaulted and "have blatantly failed to repay the facilities granted them despite persistent demands". The Board had therefore been compelled to institute legal action against defaulting ones, especially the recalcitrant ones, he said. In an address read for him, the Kwaebibirem District Chief Executive, Mr George Agyemang Duah, said the government would continue to partner rural banks and create the enabling environment for them to impact positively in their various communities of operation.