Abstract:

This paper investigates the relevance of financial statements on Rural and Community Bank performance. Rural banks are the main source of financial service in rural sub- Saharan Africa and their services are mostly patronized by persons with little or no level of education. The study is therefore examining their level of knowledge on financial performance of the rural bank in which they are investing. The data was collected from a sample of one hundred and eighty respondents using questionnaires and face to face interviews conducted with management staff of the bank and used for analysis. The statistical tools employed in assessing the relevance of financial statements on the performance of Atwima Mponua Rural Bank were Mean distribution, coefficient of variation and regression analysis. The results indicate that the bank has been giving account statement quarterly or yearly to its customers. Findings of the study indicate that the bank post its annual financial statement to customers or post it on the bank’s notice board. Then, it is found that the bank organized annual general meetings to explain its financial statement to its customers. It is therefore concluded that there is no evidence to ascertain that knowledge on financial statement is relevant to organizational performance. It is recommended that this study will be extended to other rural banks in the country to help assess the findings of this study.

Keywords: Financial Statements, Performance, Atwima Mponua Rural Bank, Case study

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