The Central Bank has issued a risk management guideline for the various Rural and Community Banks (RCBs) across the country.
According to the Central Bank, the guidelines have been designed to provide a framework within which regulated Rural and Community Banks (RCBs) will establish and embed a culture of risk management in their operations.
Based on the requirements of the Banks and Specialised Deposit-taking Institutions Act, 2016 (Act 930), the risk management guidelines will ensure among other things that, RCBs have a structured approach to risk management that meets the minimum standards expected of them.
The guidelines, the Central Bank asserts, will also provide RCBs with the needed guidance to protect their institutions from losses; protect and attract capital; instil confidence in the regulator and other stakeholders through the adoption of measures that promote stability in Rural Banks and the wider financial sector.
“Further expectations of the risk management guidelines are that, the provisions will contribute to the creation of a culture of risk awareness in the RCBs, strengthen methodologies for risk identification, risk measurement, risk mitigation, risk monitoring and reporting. RCBs would be expected to use the guidelines for the formulation of RCB specific risk management systems that will meet their unique needs,” averred the Central Bank.
Read details of guidelines below:
Bog Notice No 9 Risk Management Guidelines for Rcbs Final by Fuaad Dodoo on Scribd
