Bank of Ghana raises capital requirements for rural banks to GH¢1m

Rural banksThe Bank of Ghana has raised the minimum capital requirements for rural and community banks to GH¢1 million.

The Director and Head of Other Financial Institutions Supervision Department, Bank of Ghana (BOG), Mr. Raymond Amanfu, has therefore urged rural and community banks (RCBs) to find innovative ways to mobilize more shares.

This, he said, was important not only to aid them to undertake “big-ticket transactions” but serve as capital cushion to absorb unexpected losses that may occur in the normal course of business.

Mr. Amanfu was addressing the annual general meeting of shareholders of the Asokore Rural Bank in the Sekyere East District.

His call comes on the heels of the new capital requirements set by the Central Bank for the RCBs.

The minimum paid-up capital has now been raised from GHȼ150,000 to GHȼ1 million.

Mr. Amanfu applauded the banks for their tremendous contribution towards improving rural economies and transformation of the lives of people in the rural communities.

They had also continued to make gains with impressive growth in assets, deposits and customer base on the back of a growing menu of well-tailored products and services, he added.

Mr. Amanfu said it was evident that public confidence in the rural banking system had soared and attributed this to the good management practices employed by many of the banks.

He reminded directors of RCBs to ensure effective oversight – put in place appropriate procedures and structures to avoid conflict of interest situation.
He said breaches of banking regulations and unethical conduct must never be allowed to go unpunished.

Mr. Godfred Frank Opoku, General Manager of the Bank, asked loan defaulters to pay back to avoid prosecution.

Source: GNA

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