Ghana’s community banks must build their capital to meet the Bank of Ghana's target of GHS 5 million. Curtis William Brantuo, the Acting Managing Director of ARB Apex Bank, announced this during the 36th Annual General Meeting of Asutifi Community Bank.
These reforms aim to create stronger, more resilient institutions. The goal is to protect depositors and support local economic development. Mr. Brantuo stressed that these measures are not punitive. They are necessary to secure the long-term future of the community banking sector.
Ghana’s financial sector is undergoing significant changes. Rural and community banks face pressure to improve capital, strengthen governance, and reduce costs. They also need to tackle high non-performing loans. These challenges highlight the critical need for robust capital buffers across the sector.
Mr. Brantuo affirmed ARB Apex Bank's commitment to supporting member institutions. This support includes operational guidance, technology upgrades, and risk management training. The ARB Apex Bank provides capacity building to help these banks navigate regulatory changes.
Asutifi Community Bank demonstrated a remarkable financial recovery. The bank reversed a GHS 2.05 million loss before tax in 2024. It reported a profit before tax of over GHS 3.59 million in 2025. This turnaround resulted from strategic discipline and improved revenue collection. The bank also showed better operational focus.
Asutifi Community Bank’s stated capital increased from GHS 1.25 million in 2024 to GHS 1.37 million in 2025. Despite this improvement, its capital remains below the GHS 5 million regulatory target. This gap means capital restoration is crucial for survival, not just a routine requirement.
Mr. Brantuo urged rural and community banks to boost deposit mobilisation. They must also improve credit administration and strengthen loan recovery efforts. These steps are essential to address sector-wide non-performing loan issues. He also called for strict cost discipline, stating banks cannot survive with inefficient cost structures. Future spending must link directly to productivity.
Digital and agency banking will be central to the growth strategy of community banks. Customer behaviour is changing rapidly. Ghana’s financial ecosystem is becoming more technology-driven. Banks must use digital channels to increase transaction volumes and grow fee-based income. This will help them remain relevant in a competitive financial services environment.
Boards of community banks must lead aggressive shareholder mobilisation campaigns. They should attract new equity from existing shareholders, local businesses, and community groups. Banks should also explore strategic partnerships with credible institutional investors. These investors must share the developmental purpose of community banking.
Mr. Brantuo highlighted the importance of continuous investor confidence. This confidence comes from transparency, sound governance, and operational efficiency. Investors commit capital when they trust leadership and strategic direction.
The message is vital for Ghana’s rural and community banking sector. This sector supports financial inclusion, small businesses, and local economic activities. Unlike larger universal banks, community banks are deeply embedded in local economies. They serve farmers, traders, and small enterprises often overlooked by bigger institutions.
But this local focus also demands strong governance and capital strength. Weak capital buffers pose risks to depositors and limit lending capacity. They undermine confidence in these grassroots financial anchors. The Bank of Ghana’s reforms aim to preserve the community banking model. They also push it to become more disciplined, better capitalised, and digitally competitive. ARB Apex Bank believes this is achievable if banks embrace reform as an opportunity. This means rebuilding trust, attracting capital, and modernising operations.