Rural Bank CEOs Threaten Legal Action Against Bank of Ghana Over Tenure Directive
Chief Executive Officers (CEOs) of Ghana’s 148 Rural and Community Banks (RCBs) have issued a strong warning to the Bank of Ghana (BoG), threatening legal action if the central bank fails to amend its 2021 Corporate Governance Directive, which restricts the tenure of RCB CEOs.
Speaking at the 24th Annual CEOs Conference of RCBs in Takoradi, the President of the CEOs’ Group, Alhaji Hayatudeen Awudu Ibrahim, argued that paragraph 78 of the directive violates Article 107(b) of the 1992 Constitution and could destabilise the rural banking sector.
Potential Fallout
Alhaji Ibrahim revealed that nearly 40% of experienced RCB CEOs would be forced to vacate their positions within the next six months if the directive is not amended. He warned that the group is fully prepared to pursue legal means to resist the policy.
He further emphasised the crucial role of RCBs in Ghana’s economic future, describing rural and community banking as “the future of Ghana’s economy,” and cautioned that the BoG’s directive posed a serious threat to the sector’s stability and growth.
Sector’s Progress Highlighted
The three-day conference, themed “Bridging the Gap: Empowering Rural Banking in a Digital Economy,” also showcased the achievements of RCBs. Alex Kwasi Awua, Managing Director of ARB Apex Bank, commended the banks for successfully rolling out digital banking services that provide convenience to rural customers.
BoG’s Response
When contacted by Channel One TV Business News for comment, Mercy Ampah-Bennin, Deputy Director at the Other Financial Institutions Supervision Department of the BoG, said she was not in a position to comment on the matter.
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