Ghana: BoG Petitioned Over Provisions of Corporate Governance Directives for RCBs

Aug 09, 2019 | Ghanaian Times; All Africa

The National Council of the Association of Rural Banks has petitioned the Bank of Ghana (BoG) to reconsider some of the provisions of the corporate governance directives issued to Rural and Community Banks (RCBs).

The corporate governance directives seek to regulate the activities of the board and senior management of banks and specialised deposit taking institutions to help clean up the banking industry.

The President of the Upper East chapter of the Association of Rural Banks (ARBs), Mr Cletus Azaabi who spoke on behalf of the National Council of the RCBs at the 19th annual general meeting of the Builsa Community Bank Limited, expressed concern that many of the provisions in the directive were inimical to the operations of RCBs.

He said the clause that stipulated that Board of Directors of RCBs should serve for a period of twelve years was not the best.

Mr Azaabi also explained that the provision that General Manager and supervising managers should stay on for a maximum of 12 years should be removed completely, adding that the "General Manager and supervising managers should be allowed to work with their RCBs for as long as they are ready to and the Board of the respective RCBs are satisfied with their performance".

He however, said the provision limiting the shareholdings of directors and their relatives to a maximum of five per cent ordinary shares in RCBs was good.

"The National Council further advocated the implementation period of the Directive to start after December 2020. It is our hope that BoG listens to our demands and amend those key provisions in order to promote the growth and the survival of our RCBs," Mr Azaabi appealed... Read more on All Africa

Source: All Africa