Chief Executive Officers of Ghana’s 147 Rural and Community Banks (RCBs) have made a passionate appeal to the Bank of Ghana (BoG) to review aspects of its 2021 Corporate Governance Directive, which imposes retrospective tenure limits on RCB Chief Executive Officers.

The CEOs, through their association, are urging the central bank to reconsider paragraph 78 of the directive, which they argue would have significant negative impact on the leadership transition of many of the banks.

At the 24th Annual CEOs Conference of RCBs held in Takoradi, the President of the RCB CEOs’ Group, Alhaji Hayatudeen Awudu Ibrahim, expressed concern that enforcing the directive in its current form could result in the premature exit of nearly 40 percent of experienced RCB CEOs within six months.

He expressed concern about the potential to cause some disruption in the rural banking sector, which is already playing a transformative role in deepening financial inclusion and supporting local economies.

“We respectfully call on the Bank of Ghana to reconsider this provision in the interest of preserving institutional memory, leadership continuity, and the future of rural banking in Ghana,” Alhaji Ibrahim stated.

The group believes that while corporate governance reforms are essential, they must be implemented in a manner that acknowledges the unique operational dynamics of rural banks. They argue that the directive, if applied retrospectively, may also contravene Article 107(b) of the 1992 Constitution, which prohibits retroactive laws that impose new conditions on existing arrangements.

Alhaji Ibrahim reaffirmed the group’s commitment to upholding strong governance standards but noted that enforcing such limitations without dialogue or transitional measures could destabilise institutions that have long served as economic lifelines in rural communities.

He emphasised that rural and community banking has great role to play in the development and future of Ghana’s financial system, especially as the country moves toward a more digital and inclusive economy.

The three-day conference, themed “Bridging the Gap: Empowering Rural Banking in a Digital Economy,” also showcased the growing impact of RCBs in digital financial services. Managing Director of ARB Apex Bank, Alex Kwasi Awuah, lauded the banks for bringing modern banking solutions to underserved areas.

Meanwhile, when contacted for comment, Mercy Ampah-Bennin, Deputy Director at the Other Financial Institutions Supervision Department of the BoG, declined to speak on the issue, noting that the issue would come to the attention of the leadership of the central bank for consideration.

The CEOs remain hopeful that the Bank of Ghana will engage in constructive dialogue to find a workable solution that supports regulatory goals without disrupting the critical progress made by rural banks.