- Strong Community Banks Will Build Stronger Communities – BoG
The Bank of Ghana has urged community banks to use the sector’s ongoing reforms to deepen financial inclusion, support local enterprise and accelerate economic development in communities across the country.
Delivering the closing address at the commemoration of 50 years of rural banking in Ghana, First Deputy Governor Dr Zakari Mumuni said the formal transition from rural banking to community banking represents a strategic repositioning of the sector, not merely a change in name.
“This is more than a change of name,” Dr Mumuni told stakeholders gathered at the Bank of Ghana. “It is a renewal of purpose; a commitment to build on the lessons, strengths and achievements of the past while preparing our institutions for the opportunities that lie ahead.”
His remarks come as Ghana’s rural and community banking sector enters a new phase after five decades of providing financial services to farmers, traders, artisans, small businesses and households that have historically remained underserved by mainstream commercial banks.
Dr Mumuni described Ghana’s rural banking model as one of the country’s most important financial inclusion innovations, noting that it has evolved into one of the largest and most vibrant community banking networks on the African continent.
The transition to community banking is expected to modernise the sector’s identity, strengthen institutions, improve governance and expand access to financial services for underserved communities.
For the Bank of Ghana, the next phase of the sector’s development must be measured by its impact on local economies. Dr Mumuni said community banks must translate their expanded mandate into practical support for businesses, farmers and young entrepreneurs.
“Go back to your communities and make them your own. Support businesses, support farmers, support young entrepreneurs, and let the impact be seen in the lives of the people you serve,” he said.
The message reflects the central policy objective behind the reforms: to build stronger community-based financial institutions capable of mobilising local savings, extending productive credit, supporting agriculture, financing micro and small enterprises, and promoting financial literacy.
Community banks are expected to retain the local trust and proximity that made rural banks relevant, while adopting stronger governance, better risk management and modern business models capable of responding to changing customer needs.
Dr Mumuni reaffirmed the Bank of Ghana’s commitment to providing forward-looking regulation and effective supervision to ensure that community banks remain resilient, well-governed and capable of contributing to Ghana’s long-term economic development.
He also acknowledged the contribution of development partners, including the World Bank Group, the International Monetary Fund, the African Development Bank and GIZ, whose financial assistance, technical expertise and institutional support have helped shape the sector over the past five decades.
Beyond the industry itself, the First Deputy Governor appealed to the public to embrace the new community banking model, describing the institutions as community-owned assets whose success depends on public confidence, patronage and participation.
“These are your community institutions. Know your community bank. Support your community bank. Help make it stronger because strong community banks build stronger communities, and stronger communities build a stronger Ghana,” he said.
That appeal is important because community banking depends heavily on trust. Unlike large commercial banks, community banks draw much of their strength from relationships, local knowledge and the confidence of people within the areas they serve.
The reform agenda will therefore require both institutional discipline and public ownership. Community banks must improve professionalism and governance, but communities must also see them as credible partners in local development.
Dr Mumuni said the sector’s future would be defined not only by its history, but by the reforms and partnerships being built today.
“The next 50 years will not be defined simply by the institutions we inherit. It will be defined by the institutions we strengthen, the partnerships we deepen and the lives we transform,” he said.
The transition to community banking marks a new test for a sector that has long been central to Ghana’s financial inclusion story. The institutions have survived for 50 years by staying close to communities. Their next challenge is to become stronger, more digital, better governed and more development-focused without losing the trust that made them relevant.
For the Bank of Ghana, the direction is clear: community banks must become anchors of inclusive growth, linking financial access to real economic opportunity in the communities they serve.
