BoG Reforms to CreateWell-Capitalised Community Banks
The ongoing regulatory reforms being implemented by the Bank of Ghana (BoG) across the rural and community banking sector are intended to build stronger, more resilient and adequately capitalised institutions capable of protecting depositor funds and driving local economic growth, Acting Managing Director of ARB Apex Bank, Curtis William Brantuo, has said.
Speaking at the 36th Annual General Meeting of Asutifi Community Bank held at Acherensua in the Ahafo Region, Mr Brantuo stressed that the reforms should be viewed as a strategic effort to strengthen the sector rather than as punitive regulatory measures.
According to him, the central bank’s intervention seeks to position rural and community banks for long-term sustainability, improve financial stability and enhance public confidence in the sector.
He assured stakeholders that ARB Apex Bank remains committed to supporting member institutions as they navigate the evolving regulatory environment.
“Investor confidence must continuously be strengthened through transparency, sound governance, and operational efficiency,” Mr Brantuo concluded. “Investors commit capital where there is confidence in leadership and strategic direction.”
Mr Brantuo noted that ARB Apex Bank continues to provide operational support, technological solutions, risk management guidance and capacity-building initiatives to help member banks meet emerging regulatory and market demands.
A key feature of the meeting was the strong financial turnaround recorded by Asutifi Community Bank during the 2025 financial year. The Acting Managing Director commended the Board, Management and Staff for reversing a loss before tax of approximately GH¢2.05 million in 2024 into a profit before tax exceeding GH¢3.59 million in 2025.
He described the performance as evidence of improved managerial discipline, stronger revenue generation efforts and enhanced operational efficiency.
The bank also recorded growth in its stated capital, which increased from GH¢1.25 million in 2024 to GH¢1.37 million in 2025. While the improvement reflects growing shareholder confidence and deliberate efforts to strengthen the institution’s capital position, the figure remains below the Bank of Ghana’s minimum capital requirement target of GH¢5 million.
Mr Brantuo emphasised that capital adequacy has become one of the most pressing challenges facing the rural and community banking industry, making recapitalisation a critical business priority.
To accelerate capital restoration and strengthen long-term viability, he urged community banks to intensify deposit mobilisation efforts while improving credit administration and loan recovery mechanisms to address the persistent challenge of non-performing loans across the sector.
He further stressed the importance of maintaining strict cost controls, arguing that banks can no longer rely on inefficient expenditure models to remain competitive.
The Acting Managing Director also encouraged institutions to expand their use of digital and agency banking channels to increase transaction volumes, diversify revenue streams and enhance their relevance within Ghana’s rapidly evolving financial services landscape.
Beyond operational measures, he called on boards of directors to lead aggressive shareholder mobilisation campaigns aimed at attracting additional equity investment from existing shareholders and prospective investors, including local entrepreneurs, farmer-based organisations, churches, professionals and community groups.
He further recommended that banks explore partnerships with credible institutional investors whose objectives align with the developmental mandate of community banking.
Mr Brantuo congratulated the Board, Management, Staff and Shareholders of Asutifi Community Bank for the progress achieved so far and urged them to remain focused on sustaining the gains made as the sector undergoes transformation. He expressed confidence that with stronger governance, prudent financial management and sustained capital mobilisation efforts, rural and community banks would be better positioned to support economic development and financial inclusion across their respective communities
