The Bank of Ghana (BoG) has announced a draft Liquidity Coverage Ratio (LCR) requirement that would compel banks to hold enough high‑quality liquid assets to cover a 30‑day period of significant financial stress. The proposal is part of a broader effort to reinforce the sector’s risk‑management framework.
Under the proposed directive, banks would need to maintain a liquidity buffer capable of meeting short‑term obligations amid funding pressure. The BoG says the rule would also serve as a prudential benchmark for assessing banks’ resilience to sudden cash outflows.
In line with the BoG’s Procedures for Issuance of Directives, 2020, the central bank has invited the banking industry and the general public to submit comments by November 30, 2026. Stakeholders can send their input to [email protected] and will receive written explanations on how comments were considered and whether they were incorporated.
The LCR proposal comes alongside the BoG’s Credit Risk Management Directive, which complements the Non‑Performing Loan Notice issued last year. Together, the measures aim to strengthen both the quality of banks’ credit portfolios and their liquidity resilience.
While the final impact on treasury operations, liquidity planning and asset composition will depend on the final directive, the BoG has stressed that the consultation offers a chance to raise implementation concerns and suggest adjustments before the rules take effect.
Stakeholders are urged to review the draft and contribute their views before the deadline, as the BoG seeks to ensure the new liquidity rules are both effective and practicable.
