BoG Clarifies ‘Clean Up’ of Rural Banks

The Bank of Ghana has warned against creating panic on social media over savings with Rural and Community Banks (RCBs) in the country.

According to the Central bank, only insolvent RCBs will be dissolved, which does not include those in good standing, as being speculated on social media.

“The attention of the Bank of Ghana has been drawn to malicious messages circulating on social media platforms such as WhatsApp and Facebook that an intended “clean up” of Rural and Community Banks (RCBs) sub-sector by the Bank of Ghana would negatively affect depositors fund with RCBs, urging them to move their funds to other institutions.

“For the avoidance of doubt, the clean-up exercise is only directed at insolvent and illiquid financial institutions which are not able to meet depositor withdrawals. The exercise is to enable depositors have access to their funds.

“The Bank of Ghana would want to encourage the general public and customers to continue to do business with RCBs that are solvent, liquid and strong,” the bank said.

An ongoing clean up exercise in the financial sector by the bank has led to several banks and microfinance institutions being shut down.