• The central bank has called on rural banks to meet the minimum capital requirement
• The requirement which is pegged at GH¢1 million is expected to be paid by the end of 2021
• The rural banking sector on the other hand has recorded a 27.4% growth as at June 30, 2021
The Bank of Ghana has said it expects rural and community banks operating in the country to meet the minimum capital requirement of GH¢1 million by the end of December 2021.
The call comes after Governor of the Central Bank, Dr Ernest Addison revealed that the overall profitability of the rural banking sectors has remained positive as at the end of June 30, 2021.
He said the sector recorded an annual growth of 27.4 percent in total assets amounting to GH¢6.5 billion for the period.
Making the disclosure in a speech at the 40th-anniversary celebration of the Akuapem Rural Bank, the central bank governor said advances, deposits and investments in the rural banking sector also increased by 23.6, 31.2 and 50.1 percent, respectively.
“It is our expectation that all rural and community banks will fully comply with the minimum capitalisation requirement of GH¢1million by the end of 2021 and maintain the increased capital unimpaired,” the governor urged.
Meanwhile, the Governor of the central bank disclosed Ghana has since the 1980s till date increased the rural and community banks space from an earlier 30 to 145 institutions with branch networks out of about 851.
“The increased number of rural banks has been accompanied by increased customer reach, technology deployment, as well as improved delivery of financial services within the local communities,” he concluded.