The Bank of Ghana and other business regulatory bodies must create a mini stock exchange for Rural and Community Banks (RCBs), according to the Association of RCBs.

Currently, there is no platform for shareholders of RCBs who wish to sell back their stake in the banks because the bulk of RCBs do not meet the financial conditions and indicators needed to be listed on the stock market to guarantee their shareholders that opportunity.

A miniature stock exchange with relatively compromised indicators for about the 130 RCBs would be a milestone in transforming rural banking as it would entice many to trade there, Kofi Bonsu Boakye-Boateng, President of Brong Ahafo Chapter of Association of RCBs, has advocated.

“Many potential investors are reluctant to patronise shares of RCBs as they are perceived to be a highly risky venture as there is no avenue for you to sell back shares should the need be. This is hugely affecting the Banks in their attempts to attract new shareholders and help boost their financial standings,” he observed.

Mr. Boakye-Boateng speaking in an interview with Business and Financial Times said as the BoG has delegated some of its powers to the ARB Apex Bank to transact business with RCBs per their level, it would be equally appropriate for it [BoG] and its allied regulatory bodies to craft a small market for RCBs’ shareholders to do business there at least twice a year, or quarterly.

Mr. Boakye-Boateng, touching on other issues, strongly opposed the proposed increment of RCBs’ paid-up capital of GH¢150,000.00 by the BoG.

He lamented that many banks are currently struggling to meet the GH¢150,000.00 target and therefore any attempt by the BoG to increase the financial benchmark would be suicidal for rural banking.

“RCBs should not be treated and rated as Commercial Banks who have high financial status. Financial regulators must be mindful of the concept behind the establishment of them [RCBs]. They are basically the preserve banking entities for rural dwellers with low financial income, and much should not be expected of them with regard to their standings,” he said.

When asked if the proposed move by the BoG is meant to streamline rural banking, he responded: “It might be intended to raise the bar in the rural banking sector, but it could also be killing RCBs – of whom many are yet to find their feet after so many years of operation.”

By Edward Adjei FRIMPONG, Sunyani