Chief Executive Officers (CEOs) of Ghana’s 147 Rural and Community Banks (RCBs) are appealing to the Bank of Ghana (BoG) to review portions of its 2021 Corporate Governance Directive, particularly the provision that imposes retrospective tenure limits on RCB executives.

Through their association, the CEOs have called on the central bank to reconsider paragraph 78 of the directive, warning that its implementation could disrupt leadership succession and stability within the rural banking sector.

Speaking at the 24th Annual CEOs Conference of RCBs held in Takoradi, the President of the RCB CEOs’ Group, Alhaji Hayatudeen Awudu Ibrahim, cautioned that enforcing the directive in its current form could force out nearly 40 percent of experienced CEOs within six months.

He warned that such an outcome could undermine the progress made by rural banks in driving 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 appealed.

While acknowledging the importance of good corporate governance, the group argued that the directive must take into account the unique operational realities of rural banks. They also contended that applying the rule retrospectively could contravene Article 107(b) of Ghana’s 1992 Constitution, which prohibits retroactive legislation that alters existing arrangements.

Alhaji Ibrahim reaffirmed the CEOs’ commitment to strong governance practices but cautioned that implementing such changes without adequate consultation or transition measures could destabilise rural banking institutions that serve as vital financial lifelines in many communities.

He further noted that rural and community banks have a pivotal role to play in advancing Ghana’s financial system, particularly as the country embraces a more digital and inclusive economy.

The three-day conference, themed “Bridging the Gap: Empowering Rural Banking in a Digital Economy,” highlighted the growing contributions of RCBs to digital financial services. Alex Kwasi Awuah, Managing Director of ARB Apex Bank, commended the banks for extending modern banking solutions to underserved communities.

When contacted for comment, Mercy Ampah-Bennin, Deputy Director at the BoG’s Other Financial Institutions Supervision Department, declined to elaborate but said the issue would be referred to the central bank’s leadership for consideration.

The CEOs expressed optimism that the Bank of Ghana will engage in constructive dialogue to reach a balanced solution that upholds regulatory standards while protecting the gains made by rural and community banks.