By Ghana News

Copyright ghanamma

Chief Executive Officers (CEOs) of Ghana’s 148 Rural and Community Banks (RCBs) have threatened to take legal action against the Bank of Ghana (BoG) if it fails to amend its 2021 Corporate Governance Directive, which limits the tenure of CEOs of RCBs.

The CEOs argue that the directive, specifically paragraph 78, contravenes Article 107 (b) of the 1992 Constitution and could destabilise the rural banking sector.

Speaking at the 24th Annual CEOs Conference of RCBs in Takoradi, the President of the CEOs’ Group of RCBs, Alhaji Hayatudeen Awudu Ibrahim, warned that if the directive is not amended, nearly 40 percent of experienced CEOs will be forced to step down within six months.

He stressed that the group is prepared to use all legal means to resist the policy.

Alhaji Ibrahim further described rural and community banking as the future of Ghana’s economy, cautioning that the BoG’s directive poses a major threat to the sector.

“If the status quo persists, nearly all the seasoned CEOs who have served their Banks and the industry with distinction will be compelled to step down in six (6) months due to the Directive’s implementation.

“To ensure clarity and fairness, we will explore all lawful avenues to seek redress and guidance as necessary, including legal recourse if required, to protect our members’ rights in accordance with the laws of Ghana,” he cautioned.

The three-day conference, held under the theme “Bridging the Gap: Empowering Rural Banking in a Digital Economy,” also highlighted progress made by RCBs.

Managing Director of ARB Apex Bank, Alex Kwasi Awuah, praised the banks for bringing convenient digital banking services to rural customers.

When asked for a response to the CEOs’ threat, Mercy Ampah-Bennin, Deputy Director at the Other Financial Institutions Supervision Department of the Bank of Ghana, told Channel One TV Business News that she was not in a position to comment on the matter.