Corporate Governance Directive to address rural banking sector concerns – Dr Addison

• The BoG has said its Corporate Governance Directives will addressing lingering concerns in the rural banking sector

• Dr Ernest Addision it the directive will promote sound principles and best practices

• He added that the rural banking sector continues to be a driver for financial inclusion in Ghana

The introduction of the Corporate Governance Directive and Risk Management Guideline for rural and community banks is expected to lingering concerns in the sector, Governor of the Bank of Ghana, Dr Ernest Addison has highlighted.

According to him, these guidelines establish sound corporate governance principles and best practices within the rural banking sector which continue to be drivers for financial inclusion in Ghana.

Dr Addison speaking at the 40th-anniversary celebration of Akuapem Rural bank Limited said “to address lingering corporate governance and risk management weaknesses in the rural banking sector, the Bank published the Corporate Governance Directive and Risk Management Guideline for rural and community banks.

He explained that these guidelines seek to further promote the governance systems that will create the environment for individual institutions to undertake their licensed business sustainably.

“The Corporate Governance Directive establishes sound corporate governance principles and best practices within the rural banking sector. Among others, it is expected to promote governance systems that will create the environment for individual institutions to undertake their licensed business sustainably, serve the best interest of depositors and other stakeholders and enhance overall corporate performance, accountability, and public trust,” he pointed.

He continued, “there is also the Risk Management Guidelines that seek to provide a comprehensive risk management framework that will enable rural and community banks to fashion an appropriate culture of risk management in their respective institutions.”