The ARB Apex Bank Limited has cautioned Rural and Community Banks (RCBs) against noncompliance of some critical regulations governing their operations.
The regulatory body has threatened it will crack the whip on those among the 139 RCBs that continue to flout regulations.
According to ARB Apex Bank, most RCBs have not complied with amended Regulations 10 (i) of the ARB Apex Bank Limited Regulations, 2006 (L.I. 1825).
The Regulation, among other things, stipulates that ‘an RCB is authorized to purchase shares in the ARB Apex Bank; RCBs are obliged to comply with rules, procedures and policies made by the Apex Bank.”
The said Regulation also enjoins Board of Directors of RCBs to pass resolution to authorize the purchase of required number of shares and shall ensure compliance with other conditions for membership and each new RCB shall subscribe fully to the shares at the existing value after the establishment of the Bank.
Mr. Kwadwo Aye Kusi, Managing Director of ARB Apex Bank, in a speech read for him during the 31st annual general meeting of the Kintampo Rural Bank, said “compliance with legislations, regulations, rules and policies are as important as risk management and auditing.”
He indicated that the Apex Bank has developed a ‘know Your Customer)’ compliant account opening form for RCBs and also introduced the G-Vive platform for verification of authenticity of customers.
He thus urged RCBs to ride on such interventions to prevent unscrupulous persons from using them to perpetuate financial crimes.
The Apex Bank MD also entreated RCBs to intensify their share mobilization drive to boost paid-up capital of shareholders. The required minimum capital for RCBs has been increased by the Bank of Ghana from the current GH¢300,000 to GH¢1million by the end of 2017.
Meanwhile, the Kintampo North Municipal Chief Executive, Justice Michael Baffoe, has advised RCBs to be meticulous in appointing people onto their boards.
He said Banks must not choose persons merely because they have more shares or have more money to buy additional shares but must consider people with high moral aptitude and relevant professional knowledge and experiences to enrich decisions for the sustainability and growth of banks.