• It is aimed at providing a regulatory framework for adoption of risk management practices
• The move is expected to strengthen the operations of RCBs
The Bank of Ghana (BoG) has issued a set of guidelines centered on de-risking the Rural and Community Banks (RCBs) in the banking sector.
A statement issued by the central bank explained the guidelines are aimed at providing a regulatory framework which establishes RCBs to adopt risk management practices.
“The guidelines set out the minimum standard provisions on policies and procedures that would have to be covered in the various policies and procedures manuals used by the RCBs,” the bank said.
“The guidelines will also provide RCBs with the needed guidance to protect their institutions from losses; protect and attract capital; and instil confidence in the regulator and other stakeholders through the adoption of measures that promote stability in rural banks and the wider financial sector,” the statement read in part.
The Bank of Ghana pointed the guidelines will further ensure that RCBs are well strengthened for risk identification, measurement, mitigation, monitoring, and reporting.
Read the full statement below:
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