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A community banking expert has urged the Bank of Ghana (BoG) to accelerate approval processes for newly elected directors and branch expansion requests, warning that prolonged regulatory delays could hinder growth plans and slow efforts to deepen financial inclusion across Ghana.
The call comes as community banks—traditionally known as rural banks—continue to emerge as one of the fastest-growing and most resilient segments of Ghana’s banking sector, driven by stronger regulation, improved governance, and rising public confidence.
Industry stakeholders say delays in securing approvals for directors, branch permits, and other operational clearances can prevent banks from fully constituting their boards, postpone expansion into underserved communities, and increase project costs tied to branch development. These bottlenecks persist even as tighter regulatory oversight by the central bank strengthens stability and trust within the sector.
Joseph Akossey, Executive Director of Proven Trusted Solutions, said the BoG deserves recognition for the progress made in strengthening governance and regulatory supervision within the community banking ecosystem.
“BoG is doing extremely well in its regulatory oversight of community banks. This has fostered stability in the sector and strengthened the confidence level of the banking public,” he said.
According to Akossey, community banks have become an increasingly important pillar of Ghana’s banking system and broader financial inclusion agenda. He added that upcoming reforms in the microfinance sector could further strengthen capitalisation and improve resilience.
“The microfinance sector reforms to be implemented will go a long way in making the sector better capitalised and more robust to deepen financial inclusion and drive economic growth and development,” he said.
Against this backdrop, Akossey urged the central bank to shorten approval timelines for newly elected directors of community banks.
He described the “Fit and Proper” framework as a critical governance safeguard that ensures only qualified and competent individuals are entrusted with board oversight responsibilities and the protection of depositors’ funds.
“It is commendable that BoG undertakes extensive due diligence to ensure directors meet the Fit and Proper requirements. This helps ensure the right people are appointed to provide effective oversight and meet the expectations of shareholders and other stakeholders,” he said.
However, he noted that the approval process could be made more efficient without compromising the integrity of regulatory checks.
“There are instances where approval of newly elected directors is delayed, and this can have negative implications for banks,” he said.
Akossey noted that not all delays stem directly from the central bank, as the approval process involves coordination with multiple institutions responsible for background and compliance verification.
These include the Financial Intelligence Centre (FIC), which handles anti-money laundering checks, and the Criminal Investigation Department (CID), which conducts background verification.
“Delays can occur at any point along the chain. For this reason, these institutions must also fast-track their work to enable BoG to meet its approval timelines,” he said.
He added that some delays are caused by the banks themselves, particularly when required documentation is not submitted promptly after annual general meetings.
According to him, community banks must ensure personality note forms and supporting documents—including tax clearance certificates for newly elected directors—are submitted without delay to avoid slowing the regulatory process.
“This will enable the regulator and its partner institutions to play their part in avoiding unnecessary delays. The leadership of community banks should bear in mind that if they delay the process, the entire approval chain is affected because of the rigorous Fit and Proper screening mechanism,” he said.
On branch expansion, Akossey warned that delays in securing permits, inspections, and regulatory approvals for new branches could weaken efforts to extend financial services to unserved and underserved communities.
He said prolonged approval timelines can also disrupt lease agreements, delay operational readiness, and increase costs for banks planning expansion into new markets.
“BoG is therefore encouraged to fast-track this process to prevent some banks from bypassing due process in opening new branches,” he said.
Akossey also advocated regulatory reforms that would allow well-capitalised and efficiently managed community banks to expand beyond their traditional operating territories, provided they satisfy prudential requirements.
He argued that high-performing community banks demonstrating strong profitability, asset growth, and operational efficiency should be allowed greater geographic flexibility.
“Some community banks are currently performing strongly in terms of profitability, asset growth and operational efficiency. Such institutions should not be denied the opportunity to expand their footprint if they meet the required standards,” he said.
According to him, enabling successful community banks to operate across regions would accelerate financial inclusion in both rural and urban communities while supporting broader economic development.
Drawing comparisons with international banking models, Akossey noted that community banks in the United States are permitted to expand across state lines as long as they continue to meet prudential and regulatory requirements.
“That model has contributed significantly to the growth and sustainability of community banking and offers useful lessons for Ghana as the sector continues to evolve,” he said.
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