Home | Goldstreet Business
Tuesday, June 28, 2022
  • Home
  • General News
    • Extractives
    • Auto
  • Business
    • Banking and Finance
    • AgriBusiness
    • Insurance
    • Mining
    • Oil and Gas
    • Real Estate/Housing
  • News
    • Top Stories
    • Agriculture
    • Maritime/Aviation
    • Energy
    • Education
    • Construction
  • Technology
    • ICT
    • Telecom
  • World
    • Africa
    • International
  • Editorial/Features
  • GSB Data Services
No Result
View All Result
  • Home
  • General News
    • Extractives
    • Auto
  • Business
    • Banking and Finance
    • AgriBusiness
    • Insurance
    • Mining
    • Oil and Gas
    • Real Estate/Housing
  • News
    • Top Stories
    • Agriculture
    • Maritime/Aviation
    • Energy
    • Education
    • Construction
  • Technology
    • ICT
    • Telecom
  • World
    • Africa
    • International
  • Editorial/Features
  • GSB Data Services
No Result
View All Result
Gold Business Logo
No Result
View All Result

Rural, community banks operating under stressful conditions … analysts predict their collapse

May 2, 2018
in Uncategorized
0
Share on FacebookShare on Twitter

Available information has revealed that many rural and community banks in Ghana are operating under highly stressful conditions, while some are financially bleeding heavily, due to mismanagement and failure to adhere to systematic laid down procedures.

Weak boards and management systems in most of them are also resulting in operational losses while weak loan recovery rates, high cost-centres and investments in high risk instruments are driving the Capital Adequacy Ratio of these banks below the 10 percent prudential threshold.

RELATED POSTS

Ford Recalls 2,900 EV F-150 Lightning Pickup Trucks

Time is not on our side, ‘going to IMF is not a sin’ – Bokpin to government

It is observed that some of these rural and community banks have not been able to submit or publish their financial statements over the period while the regulator, ARB Apex Bank, seems unable to save the situation by enforcing the law and sanctioning defaulters, according to Jonathan Cann, a management consultant with JPCANN Associates, in an interview.

According to him “there is that perception that only the universal banks are struggling. The secret is that the rural and community banks are heavily bleeding but this is not being heard because all the attention and focus are on the universal banks. It will be very dangerous and suicidal should that segment of banking be allowed to collapse. It wouldn’t benefit the microeconomic sector.

“There is, therefore, need for stricter measures to be put in place to curb the situation.
The Bank of Ghana (BoG) in 2015 raised the minimum paid-up capital requirement of all rural and community banks from GHS300,000 to GHS1million.

All the 141 rural and community banks were expected to raise their paid-up capital to GHS500,000 by December 2016 and GHS1million by December 2017.

As at January 2018 less than 100 of them had met and exceeded the GHS1million paid-up-capital threshold.
Majority have not complied with the 10 percent minimum capital adequacy ratio requirement as stated in Section 29 (2) of the Banks and Specialized Deposit-Taking Institutions Act 2016, (Act 930). This indicates that non-compliant institutions have insufficient funds to absorb unanticipated losses, and therefore the safety of customers’ deposits is risked.

In the era before the late 1970s, rural dwellers in Ghana had almost no access to institutional credit; and in many rural communities, secure, safe, and convenient savings and payment facilities hardly existed.

In response to this situation, the government, together with BoG, took several measures to increase access to credit in rural areas, including facilitating the establishment of rural and community banks.

Rural banks have not only played an important role in the development of the financial services sector but have also contributed meaningfully to the lives of people in various communities in terms of education, health, security, employment and business, among others, in their catchment areas across the country.

By Adu Koranteng

facebookShare on Facebook
TwitterTweet
ShareTweetShare

Related Posts

Ford Recalls 2,900 EV F-150 Lightning Pickup Trucks

Ford Recalls 2,900 EV F-150 Lightning Pickup Trucks

June 28, 2022
Time is not on our side, ‘going to IMF is not a sin’ – Bokpin to government

Time is not on our side, ‘going to IMF is not a sin’ – Bokpin to government

June 28, 2022
Finance, Risk, and Financial Risk Management: From a Business Manager’s Standpoint

Finance, Risk, and Financial Risk Management: From a Business Manager’s Standpoint

June 27, 2022
MTN Ghana to pay GHS0.085 dividend per share

MTN Ghana extends coverage to 5.3 million Ghanaians in 2021- CEO

June 26, 2022
45% of UK drivers cut vehicle journeys as Fuel Prices Surge

45% of UK drivers cut vehicle journeys as Fuel Prices Surge

June 26, 2022
Next Post

GRA to impound more vehicles

Barclays Bank to become Absa Ghana this month

Archives

<
June 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
▼
>
MonTueWedThuFriSatSun
  12345
6789101112
13141516171819
20212223242526
27282930   
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
    123
45678910
11121314151617
18192021222324
252627282930 
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
 123456
78910111213
14151617181920
21222324252627
28      
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
1234567
891011121314
15161718192021
22232425262728
2930     
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
  12345
6789101112
13141516171819
20212223242526
27282930   
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
   1234
567891011
12131415161718
19202122232425
262728293031 
       
 123456
78910111213
14151617181920
21222324252627
282930    
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
   1234
567891011
12131415161718
19202122232425
2627282930  
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
1234567
891011121314
15161718192021
22232425262728
       
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
      1
2345678
9101112131415
16171819202122
23242526272829
30      
   1234
567891011
12131415161718
19202122232425
262728293031 
       
 123456
78910111213
14151617181920
21222324252627
282930    
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
1234567
891011121314
15161718192021
22232425262728
2930     
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
  12345
6789101112
13141516171819
20212223242526
27282930   
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
     12
3456789
10111213141516
17181920212223
242526272829 
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
    123
45678910
11121314151617
18192021222324
252627282930 
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
      1
2345678
9101112131415
16171819202122
23242526272829
30      
   1234
567891011
12131415161718
19202122232425
262728293031 
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
     12
3456789
10111213141516
17181920212223
24252627282930
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
1234567
891011121314
15161718192021
22232425262728
2930     
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
    123
45678910
11121314151617
18192021222324
25262728   
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
   1234
567891011
12131415161718
19202122232425
2627282930  
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
     12
3456789
10111213141516
17181920212223
24252627282930
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
    123
45678910
11121314151617
18192021222324
252627282930 
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
      1
2345678
9101112131415
16171819202122
23242526272829
30      
   1234
567891011
12131415161718
19202122232425
262728293031 
       

RECOMMENDED

Ford Recalls 2,900 EV F-150 Lightning Pickup Trucks

Ford Recalls 2,900 EV F-150 Lightning Pickup Trucks

June 28, 2022
Time is not on our side, ‘going to IMF is not a sin’ – Bokpin to government

Time is not on our side, ‘going to IMF is not a sin’ – Bokpin to government

June 28, 2022

MOST VIEWED

Plugin Install : Popular Post Widget need JNews - View Counter to be installed
  • Energy
  • Health
  • Auto
  • International
  • Subscription Form
  • Staff Webmail
  • About Us
  • Contact Us
Call us: +233 24 432 0902 | info@goldstreetbusiness.com

© Copyright © 2020 goldstreetbusiness.com. All Rights Reserved.

No Result
View All Result
  • Homepages
    • Homepage Layout 1
    • Homepage Layout 2
  • World
  • Business
  • Technology
  • Health

© Copyright © 2020 goldstreetbusiness.com. All Rights Reserved.

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.