The Bank of Ghana (BoG) is preparing to introduce a Liquidity Coverage Ratio (LCR) requirement for banks to strengthen their ability to meet short-term financial obligations during periods of significant market stress.

The central bank has invited banks, industry stakeholders and members of the public to submit comments on a proposed Liquidity Coverage Ratio Directive before it is finalised.

The consultation is being conducted in accordance with the BoG’s Procedures for Issuance of Directives, 2020.

Under the proposed framework, banks would be required to maintain adequate high-quality liquid assets to cover their liquidity needs over a 30-calendar-day period of significant financial stress.

The requirement is intended to help banks withstand sudden cash outflows and funding pressures without compromising their ability to meet obligations.

The proposed directive would establish a prudential benchmark for assessing banks’ liquidity buffers and resilience to financial shocks. It could also require banks to review their treasury operations, liquidity planning and the composition of assets held to meet regulatory requirements.

The BoG has set November 30, 2026, as the deadline for submissions. Comments are to be sent to bsdletters@bog.gov.gh.

The central bank says it will consider all material feedback received and provide written explanations indicating how the comments were addressed, including whether they were incorporated into the final directive.

BoG advances broader banking risk management reforms

The proposed liquidity requirement forms part of broader efforts by the Bank of Ghana to strengthen risk management across the banking sector, including measures targeting credit risk and non-performing loans.

The central bank has also outlined a Credit Risk Management Directive intended to complement the Non-Performing Loan Notice issued last year.

The proposed framework is expected to cover the entire lending process, from credit origination and administration to monitoring, measurement and recovery.

While the credit-risk measures focus on how banks assess and manage lending exposures, the LCR requirement is designed to ensure they have sufficient liquid assets to meet short-term obligations during periods of financial stress.

Together, the proposed measures would address two key areas of banking-sector resilience: the management of credit portfolios and the capacity to withstand liquidity pressures.

The consultation period will allow stakeholders to raise implementation concerns and recommend adjustments before the liquidity directive is finalised.