The government has raised GH¢5 billion to support the recapitalisation of the Bank of Ghana (BoG), the Minister of Finance, Dr Cassiel Ato Forson, has announced.
He said additional funding would be provided in the 2027 Budget as part of efforts to restore the Central Bank’s financial strength and reinforce macroeconomic stability.
Dr Forson disclosed this in a speech read on his behalf at the commemoration of the 50th anniversary of rural banking and the transition to community banking in Accra yesterday.
The event, on the theme “The Future of Community Banks,” brought together regulators, policymakers, banking executives and other stakeholders to celebrate five decades of community-focused banking and chart a new direction for the sector.
According to the Finance Minister, the GH¢5 billion bond, issued in March this year, marked the first phase of a broader strategy to restore the Bank of Ghana’s balance sheet and financial resilience by 2032.
He said the government remained committed to strengthening the institutional independence of the Central Bank and ensuring that it continued to deliver on its mandate of maintaining price and financial stability.
“In next year’s budget, government will make another allocation to further recapitalise the Bank of Ghana. These efforts are aimed at preserving monetary policy credibility and reinforcing confidence in the country’s financial system,” he said.
Dr Forson noted that the recapitalisation programme was being implemented at a time when Ghana’s macroeconomic fundamentals were improving, supported by stronger coordination between the Ministry of Finance and the Bank of Ghana through disciplined fiscal and monetary policies.
He commended community banks for their performance over the years, noting that the sector now comprised 147 licensed institutions operating about 1,000 branches and serving more than eight million customers nationwide.
He said the transition from rural banking to community banking went beyond a change of name, describing it as a renewed vision that embraced technology, sound governance and innovation to meet the needs of a changing economy.
Dr Forson stressed that community banks must evolve beyond their traditional lending role to become trusted development partners, providers of digital financial services, and promoters of financial literacy and inclusive growth.
Also addressing the event, the Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, announced a package of reforms, including the rebranding of rural banks as community banks and the introduction of urban community banks.
He explained that the move would extend banking services to underserved populations in both rural and urban areas.
Dr Asiama said all existing institutions were expected to complete their statutory name changes, corporate rebranding and regulatory alignment by December 31, 2026, adding that the reforms would be backed by strong prudential regulation and supervision.
The Board Chairman of ARB Apex Bank, Mr Daniel Owusu, appealed to the Bank of Ghana to extend the deadline for the recapitalisation of community banks to allow more institutions to meet the new capital requirements while continuing to deepen financial inclusion.
BY KINGSLEY ASARE
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