An evaluation of the performance of the ARB Apex Bank on rural banks in Ashanti: the case of Atwima Kwanwoma Rural Bank Ltd.

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Since 1976, when the first rural bank was established in Ghana, the rural banking industry have gone through various development, administrative, legal and supervisory phases, culminating into the establishment of the ARB Apex Bank in 2002. The purpose of this study is to evaluate the performance of the ARB Apex Bank as a mini central bank for rural banks in Ghana. Evaluation of the performance of the ARB APEX Bank has become necessary because since the establishment of the APEX Bank, there has not been any independent systematic study to evaluate its performance. The Ashanti Region was chosen as a double case study for Apex and Atwima Kwanwoma Rural Bank because of the high localization of rural banks and the presence of an APEX Bank, making access to research units easier. Majority of the respondents from Atwima Kwanwoma Rural Bank and APEX Bank were at strategic position, to give valuable information. Desk study, interviews, questionnaires and direct observation were employed in the collection of data. Data analysis used both qualitative and quantitative methods. At the end of the study, it was realized that there is a mixed impact of Apex on Rural Banks. In respect of cheque clearing, specie and staff training, its impact is significant. However, in respect of clients, deposits and assets, its impact is insignificant. It has been suggested that, Apex bank needs to establish an on-site inspection unit to help in its monitoring activities.
A thesis submitted to the College of Arts and Social Sciences, KNUST School of Business, 2008