The Association of Rural Banks of Ghana has said that corporate tax hikes, increased stated capital and the revised transitional provisions of corporate governance directives issued by the Bank of Ghana are hindering their operations.
They are therefore calling on government and the Bank of Ghana, to revise some of the policies that are negatively affecting rural banks.
The 20th Biennial General Meeting of the association of rural banks at Bolgatanga in the Upper East Region, which took stock of the rural banks’ performance, also discussed challenges confronting the sector and the way forward.
Speaking at the ceremony on the theme ‘Rural Banking Beyond 40 years’, President of Association, Dr. Nana Boamah Akowuah said although the performance of the rural banking industry has improved significantly with a capital adequacy ratio of 18.39% and over 3 billion cedis worth of total assets, the constraints have prevented them from doing better .
“The major challenges confronting Rural and community banks now include corporate tax hike from 8% to 25%, increase in stated capital and corporate governance directives transitional provision issued by the Bank of Ghana.
“We want government and the Bank of Ghana to respond to our petition submitted with regards to the reduction of the corporate governance transitional provisions issued by the BoG.”
Upper East Regional Minister Paulina Abayage admonished industry players to make corruption unattractive in the banking sector for accelerated development and also consider mergers and acquisitions to address some of their challenges.
“Fighting all manner of corruption in the banking sector is key to achieving self-sustainability and so we must police each other within the industry to curb the menace.
“I urge rural banks to consider mergers and acquisitions as its benefits outweigh the challenges and could help address some of the challenges confronting rural banks”
Chairman for the occasion, Paramount Chief of the Talensi traditional area Tongraa Kugbilsong Nanlebegtang appealed to rural banks to support government’s agenda of a Ghana Beyond Aid, by supporting and nurturing micro enterprises to thrive.
The association, in collaboration with the Deutsche Gesellschaft fürInternationale Zusammenarbeit (GIZ), will in 2019 train members on Risk management, corporate governance, mergers and acquisitions, gender advocacy and report writing to enhance their operations.
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By: Frederick Awuni/citinewsroom.com/Ghana
The post Unfavourable banking policies affecting us – Rural banks appeared first on Citi Newsroom.
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