Parliament adopts subsidiary legislation on Apex Bank

Accra, Dec. 5, GNA - Parliament on Tuesday adopted the Report of the Committee on Subsidiary Legislation on the ARB Apex Bank Regulations 2006, (L.I.1825), which is to provide rules for the establishment, operations and supervision of the ARB Apex Bank.

The Instrument is also to confer on the Apex Bank Limited the power to inspect, regulate and supervise rural and community banks subject to the supervisory authority of the Bank of Ghana.

Moving for the adoption of the Report, Mr Francis Aggrey Agbotse, Chairman of the Committee of the Committee on Subsidiary Legislation, noted that the increasing number of rural and community banks continued to pose challenges on the supervisory role of the Central Bank. Mr Paul Collins Appiah-Ofori, (NPP-Asikuma/Odoben/Brakwa) and Emmanuel Kwesi Banduah (NDC-Biakoye) seconded the motion.

The Deputy Minister of Finance and Economic Planning, Dr Anthony Akoto Osei, had laid the Instrument on November 3, 2006.

In its report, the Committee noted that even though rural banking had created increased awareness of the essence of banking and continued to serve as a catalyst for rural development, it had been occasioned by functional problems, which related more to efficiency, economic viability and sustainability of the rural bank concept.

"The necessity to assist and supervise existing and new rural and community banks to develop into efficient, viable and sustainable integrated rural banking system through the consolidation of resources and the management of capabilities of the individual unit bank had given rise to these Regulations," the Report noted.

The Regulations provide for the Incorporation, status and structure of the Bank; Object Functions and Duties of the Bank; Membership Terms; Capital Dividends and Reserve Funds and Organs of the Bank and Associated Roles.

Other provisions are Management Structures and Administrative Provisions; Inspection and Supervision of Rural and Community Banks; Inter-Relationship of the Bank and other Banks; Financial Matters and Miscellaneous Provisions including Contracts, Liquidation, Disclosure and Information and Dispute Resolution.

The Report said the Regulations sought to address the challenges of functional and procedural issues of the operations of the rural and community banks by ceding to the ARB Apex Bank the supervisory role of the Central Bank. The residual responsibility of ensuring sound banking system in the country, however, still remains the preserve of the Bank of Ghana. 5 Dec 06