Community banks across the country have been urged to strategically position themselves to benefit from ongoing regulatory reforms in the microfinance sector, with a focus on improving customer service, enhancing financial inclusion and supporting local economic development.

The call was made by the Sunyani Regional Manager of ARB Apex Bank, Ms Susan Boateng, during the 40th Annual General Meeting (AGM) of Kintampo Community Bank PLC held at Kintampo in the Bono East Region.

According to her, the reforms being implemented by the Bank of Ghana are aimed at strengthening the rural and community banking sector, improving corporate governance, enhancing resilience and ensuring the long-term sustainability of financial institutions serving rural communities.

Ms Boateng explained that one of the key reforms was the transition from the traditional ‘Rural Bank’ designation to ‘Community Bank’ under the revised Microfinance Sector Framework.

She noted that the change represented a broader vision for growth, accountability and deeper community engagement.

She commended Kintampo Community Bank PLC for embracing the transition, stating that the move positioned the bank to expand its services and strengthen its role in promoting financial inclusion and economic empowerment within its operational area.

Touching on capital requirements, Mrs Boateng said the regulator had increased the minimum stated capital for Rural and Community Banks from GH¢1 million to GH¢5 million to enable institutions withstand economic shocks, support business expansion and boost depositor confidence.

She noted that community banks that proactively strengthen their capital base would be better placed to finance agriculture, small and medium-scale enterprises (SMEs), women-led businesses and youth entrepreneurship initiatives that drive economic growth at the local level.

Mrs Boateng therefore welcomed Kintampo Community Bank’s decision to improve its capital position through the capitalization of income surplus and the issuance of bonus shares, describing the initiative as a demonstration of sound planning and commitment to regulatory compliance.

She further stressed that the future competitiveness of community banks would largely depend on their ability to embrace digital transformation, invest in cybersecurity, improve customer experience and strengthen risk management systems.

“Banks that leverage technology, build customer trust and maintain strong governance structures will remain relevant and competitive in the evolving financial services landscape,” she stated, urging management teams to prioritise staff capacity building, quality customer service and financial inclusion programmes.

Addressing shareholders at the meeting, the Board Chairman of Kintampo Community Bank PLC, Nana Owusu Gyare II, said the bank recorded strong year-on-year growth across its key performance indicators during the 2025 financial year.

He stated that the bank posted a profit after tax of GH¢10.29 million in 2025, compared to GH¢9.68 million in 2024, reflecting a significant increase in profitability.

The Board Chairman further disclosed that the bank’s total assets grew by 41.71 per cent to GH¢185.73 million at the end of the year under review.

He added that total deposits rose to GH¢141.35 million, a development he attributed to the growing confidence customers continue to place in the bank.

He expressed optimism about the bank’s future prospects, stating that management and the board remained committed to strengthening the institution’s capital base, expanding its services and creating long-term value for shareholders and customers.