BoG Must Step Up Monitoring of RCBs - Former Governor

A former deputy Governor of the Bank of Ghana (BoG), Emmanuel Asiedu Mante has asked the Bank of Ghana to step up the monitoring of Rural and Community Banks (RCB) in the country.

According to the former deputy governor, most of such banks are on the verge of collapse at the blind side of the central bank because of the lack of monitoring by ARB Apex Bank, which has the mandate to regulate and monitor rural and community banks.

His comments come at a time when some rural and community banks in the country are said to be performing poorly with about six of them on the brink of collapse in the central region.

In an interview with Citi Business News, the former deputy Governor of the Bank of Ghana, Emmanuel Asiedu Mante called on the central bank to increase monitoring of rural banks to prevent collapse due to the lack of trained, competent directors and managers.

“I have always maintained that where rural banks are concerned, you need three things: One you need a very good efficient manager who is honest, a good board who are educated to understand the business of banking, lack of supervision by the central bank. But the buck stops with the central bank who will have to have efficient monitoring of the rural and community banks in the country to prevent their collapse.”

Meanwhile, Emmanuel Asiedu Mante has backed the Bank of Ghana’s move to increase the monetary policy by 100 basis points from 24% to 25%.

He was optimistic the economy will bounce back again which will see the MPC rate reduce soon.

“The analogy I gave that if you are sick and you are given medication it does not mean you are going to remain on that medication forever, it is meant to cure a disease then after that you come back to normal. But the fact that the rates are high it does not mean it is going to be up there eternally. Once the issue is solved the rate will start dropping.”

Source: Citifmonline.com