BoG Cautions Rural and Community Banks On Interest Rates

The Bank of Ghana has cautioned rural and community banks to resist the temptation of paying unsustainable interest rates on time or fixed deposits as such rates could have adverse effects on their continued viability. 



Instead, they must establish risk management frameworks that seek to mitigate the risk peculiar to the nature of their businesses. 



They should also maintain high standards of internal controls and strengthen their risk management and internal audit functions as a means of protecting customers deposits and interest of shareholders. 



The Director, other financial institutions Supervision Department of the Bank of Ghana, Raymond Amanfu, gave the warning at the 30th Annual general meeting of Amenfiman Rural Bank at Wassa Akropong in the Western Region.

Source: GBC