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The Savelugu/Nanton District Assembly has assured the Borimanga Rural Bank that it would channel its other major financial interventions, besides the Millennium Challenge Accounts, through the bank to boost its deposit mobilisation drive. To this end, the Assembly is discussing with the Ministry of Local Government and Rural Development the possibility of transferring its share of the District Assemblies' Common Fund (DACF) to Borimanga Rural Bank instead of the Bank of Ghana (BOG) to enhance the bank's capital base. Prince Askia Mohammed, Savelugu/Nanton District Chief Executive, said this when he addressed the second Annual General Meeting (AGM) of the bank at Savelugu over the weekend. Prince Mohammed said the AGM was taking place at a time the government had just rolled out its 2010 budget statement and economic policy to usher in its growth and strategy framework towards achieving the "better Ghana" it had promised Ghanaians. He said: "This budget has demonstrated with all intents and purposes that it will address the issue of poverty, which is so endemic in this part of the country". "The government's resolve to boost agricultural production will impact positively on the lives of the people of this area since about 90 per cent of them are farmers", he said. The DCE expressed optimism that the net effect of improvement in household incomes would increase savings and thus help to halt the "vicious cycle of poverty" among the people. Alhaji Fusheini Seidu, Chairman of the Board of Directors of the bank, said in spite of the many challenges that confronted the bank during the year under review, it remained solvent and profitable. He said total assets of the bank rose from GH� 759,462 in 2007 to GH� 895,648 in 2008, representing an 18.0 per cent increase, while loans and advances appreciated to GH� 433,386 in 2008 from GH� 225,995, a 91.8 per cent rise, adding: "The bank is now reaching out to 3,457 borrowers, of which 2,507 are women. Alhaji Mohammed said deposits and investments, however, declined during the period. He said while deposits dropped from GH� 645,772 in 2007 to GH� 480,019 in 2008, representing a 25.7 per cent decrease, investments also dipped to GH� 196,590 in 2008 from GH� 212,000 in 2007, a 7.3 per cent change. He described the performance as "modest" and urged the bank to devise innovative methods to increase its deposit base adding that management was also developing new products, which would help reverse the downward trend. Alhaji Mohammed said the capital base of Borimanga stood at GH� 108,357.00 as at December 31, 2008, which was still below the GH� 150,000 minimum requirement the BOG had set for rural and community banks in the country. The Board Chairman said there were plans to expand the existing premises of the bank to make adequate room for both customers and staff adding: "We will also intensify efforts to establish agencies in Tamale, Diare and Nanton. Mr Eric Osei-Bonsu, Managing Director of the ARB Apex Bank in a speech read for him, underscored the challenges facing the banking industry in the country, mentioning saturated markets, fierce competition, limited opportunities for expansion and growth. "For these reasons, the big commercial banks have started looking for opportunities in your catchments areas and it takes a lot to survive in this competitive environment". Mr Osei-Bonsu urged the rural banks to reduce costs, increase efficiency and minimise customer dissatisfaction. "You must also appreciate the fact that there is considerable pressure on you to devise innovative products and business models that would meet the felt needs of your customers," he said.