The National President of the Association of Rural and Community Banks (RCBs), Eric Danin, has called on the Bank of Ghana (BoG) to address concerns over its corporate governance directive and ensure its implementation aligns with the country’s constitutional provisions.
Speaking at the 23rd Biennial General Meeting (BGM) and 5th Rural Banking Excellence Awards held in Kumasi Mr. Danin raised the issue of the retroactive application of BoG’s corporate governance directive, which limits the tenure of Chief Executive Officers (CEOs) to a maximum of 12 years.
While acknowledging the directive’s aim to enhance banking operations, he argued that calculating tenure retrospectively contravenes Article 107 of Ghana’s 1992 Constitution, which prohibits the retroactive application of laws.
“This approach risks penalizing long-serving CEOs who have contributed significantly to the development and stability of Rural and Community Banks,” Mr. Danin stated.
He warned that retroactive enforcement could disrupt leadership continuity and operational stability for RCBs, many of which are already grappling with financial constraints.
Mr. Danin, therefore, called on BoG to apply the directive prospectively, respecting constitutional provisions and ensuring that leadership experience remains a cornerstone of institutional stability and rural economic development.
The Managing Director of ARB Apex Bank, Alex Kwasi Awuah, commended the contributions of RCBs since the establishment of Ghana’s first rural bank at Agona Nyakrom in 1976.
Currently, RCBs serve over five million active users and hold GH₵11.98 billion in total deposits, representing 4.25% of the universal banking sector’s capital.
To enhance security, ARB Apex Bank has invested GH₵40 million in purchasing 15 armoured bullion vans for banks nationwide, safeguarding assets and ensuring employee safety during operations.
The 23rd Biennial General Meeting (BGM) and 5th Rural Banking Excellence Awards was under the theme “Building a Resilient Economy: The Role of the Rural and Community Banks.”
