Laa Formerly Labadi - Near Accra
Nii Abese - Nii Ako Okai(Right)
- La Mantse Nii Tettey Tsuru(center) - La Ogyeame -Linguist(Left)
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La Community Bank - A Gem of a Bank
The History of Laa Community Bank
In 1997, a community based organization, the La Mansaamo
Kpee (LMK), was established by the youth in the town to mobilize community
resources for community development One of the projects of LMK was a Community
Bank. In 1984 the Association made a formal application to the African Development
Foundation in the
United States
to assist in the establishment of the Bank.
ADF considered and approved the request in 1985. An amount of US $ 164,561 was granted
to start the
bank. An application to the Bank of Ghana was then made. When approval from
the Bank of Ghana appeared not to be forthcoming, the late patron of the LMK,
Mr. Justice Nii Amaa Ollennu, therefore entreated the help of Mr. K. B. Asante (vice
Chair-man) who managed to convince Mr. P. V. Obeng, then the de facto prime Minister,
that the Bank was in the interest of the people and would promote Government policy.
Mr. P. V. Obeng, then asked the Bank of Ghana to approve the application.
The Bank was formally commissioned in November 1987. Prior to the opening, the people
of La were invited to buy shares in the Bank. The response was overwhelming. The
people of La fully subscribed the 184, 500 shares as-located to them with LMK taking 48, 350 shares. The bank can therefore he truthfully described as a bank of the
people of La who continue to take great interest in its fortunes.
This is demonstrated by the large attendance at the Annual General Meetings of the
Bank. Questions and contributions made at these meetings illustrate the depth of
this interest.
The History of Laa Community Bank
The Original First Location
Current Location
The History of Laa Community Bank
The Bank started operation with a rural bank status and with the late Dr. Nii Osa
Kwao as Chairman of the Board. The Board found that the rural status restricted
its growth and expansion. Under the rural bank status the Bank of Ghana imposed
certain restrictive ceilings on lending. There was also a mandatory lending
of certain percentage of the loan portfolio to the agricultural sector. La Community
Bank appealed to the Central Bank to repeal or modify these and regulations to enable
the bank operate as a semi commercial bank. The governor, Dr. Agama, was kind enough
to grant the Bank a new status as a first Community Bank in
Ghana
.
The directors realized that the bank needed more accommodation to expand its
services and satisfy the needs of the various clients in the community. It therefore
decided to build a bank designed to meet the needs of La Community Bank.
With judicious husbanding of the bank's resources and the floating of new shares
to existing shareholders, it has been possible to start the building with the prospect
of completing it in 1998. The African Development Foundation has again been kind
enough to help with the procurement of modern banking equipment. The successful
completion of the building will not only enhance the operation of the bank, but
also enable it to expand its loan portfolio to reach more grass-root groups. People engaged in small enterprise development program will also be given improved assistance.
Credit facilities for the expansion of existing private enterprises will be
made more readily available. The bank can then better assist in the national effort
of mobilizing domestic savings to support poverty alleviation programs.
The second five-year medium term plan has expired; the Board has approved a new
one for 1999 - 2003. This new plan which will take the bank into the next millennium
will include among other things, a few hold and ambitious
The Board believes that if all goes well it would raise the Community Bank
into a fully pledged Commercial Bank status within five years. In that event, it
would open satellite branches in strategic
are, to add color and meaning to the Bank's
operations. The Board will also be
considering the possibility and desirability of having the shares of the La
Community Bank quoted on the Ghana Stock Exchange. This may be
timed
to coincide with the raising of the status of the Bank to
that of a Commercial Bank. If
this materializes
the shares will become freely marketable and indeed serve as security for other
purposes.
Such a development will enable the Bank not only to introduce new products and services
as already stated but will also lead to more projects such as assistance to small
and medium industry and Women in development. This undoubted help to raise the quality
of life in the community.