Chief Executive Officers (CEOs) of Rural and Community Banks (RCBs) have been encouraged to exhibit professionalism in their dealings, and demonstrate moral and ethical leadership – including showing versatility in implementing directives.
According to research findings by the Technical Assistance Unit of the Rural Development Fund, some RCBs have lapses in their strategic planning, internal controls; inadequate implementation of risk management function; declines in total assets quality and rising cost of operations, among other things.
These lapses when not checked could take a heavy toll on activities and the existence of RCBs.
Speaking at a ceremony to open a two-day training session for CEOs of RCBs on corporate governance, Executive Director of the Association of Rural Banks (ARB), Mrs. Comfort Owusu, underscored the importance of implementing corporate governance in the banks.
Section 6 and 92 (1) of the Banks and Specialised Deposit-Taking Institution Act 2016 (ACT 930), as well as the Bank of Ghana Corporate Governance Directive, have placed a high level of responsibility on CEOs of Rural and Community banks to be more professional and diligent in their functions.
She explained that the training seeks to enlighten CEOs on corporate governance standards and best practices expected from high-performing boards.
Also, the CEOs will understand the implications of deviating from benchmark financial ratios and interventions for sound financial performance.
Additionally, the training seeks to clarify the role of CEOs in risk governance, and the implications of sound risk management processes, policies and systems for efficient banking operations.
The CEOs were taken through the technical definition of corporate governance and its evolution and pillars, understanding the duties of the Board, and the chairman’s role as well as stewardship and agency principles.
Other objectives of the training are for the CEOs to know what leaders do, as well as knowing stakeholders of a company, why companies fail and righting the wrongs among other relevant objectives.
Corporate governance
Corporate governance is a system of rules, practices and processes by which a company is directed and controlled. It involves balancing the interests of many stakeholders and provides the framework for attaining a company’s objectives, which encompasses practically every sphere of management from action plans and internal controls to performance measurement and corporate disclosure.
