Bank of Ghana Proposes 30-Day Liquidity Buffer Rule for Banks, Seeks Public Input

• The Bank of Ghana proposed a Liquidity Coverage Ratio requirement to strengthen how banks manage short-term financial stress
• Under the proposed directive, banks would need to hold enough high-quality liquid assets to cover 30 calendar days of financial pressure
• The BoG set 30 November 2026 as the deadline for public and industry submissions on the proposed framework

The Bank of Ghana (BoG) has moved to tighten liquidity standards across the banking sector, proposing a new Liquidity Coverage Ratio (LCR) directive and opening the floor to public and industry feedback before the rules are finalised.

The central bank's proposal would require all banks to hold a sufficient stock of high-quality liquid assets capable of sustaining their operations through at least 30 consecutive calendar days of significant financial stress.

The measure is designed to ensure that banks can continue meeting short-term obligations even when funding conditions tighten sharply.

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Beyond setting a practical buffer, the proposed LCR framework would introduce a formal prudential benchmark for evaluating how well banks are positioned to absorb sudden cash outflows.

This gives regulators a clearer picture of institutional resilience and gives banks a defined standard to plan around.

The consultation is being carried out in accordance with the BoG's Procedures for Issuance of Directives, 2020.

Stakeholders, including banks and members of the general public, are invited to submit written comments to the central bank by email at bsdletters@bog.gov.gh. The submission deadline is 30 November 2026.

The BoG confirmed that it will review all substantive feedback received and provide written explanations indicating whether comments were incorporated into the final directive or not. This gives institutions an opening to flag implementation concerns or propose adjustments before the rules come into force.

Broader push to strengthen bank risk management

The liquidity proposal sits within a wider regulatory push by the BoG to reinforce risk management across the banking sector. The central bank has also outlined plans for a Credit Risk Management Directive, which is expected to complement a Non-Performing Loan notice it issued last year.

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The credit risk framework would cover the full lending cycle, from how banks originate and approve loans to how they monitor, measure and recover them. Where the LCR requirement focuses on short-term liquidity resilience, the credit risk directive targets the quality and management of banks' loan portfolios.

Together, the two measures address distinct but related vulnerabilities: the capacity to hold liquid assets under pressure, and the discipline applied to lending decisions. The practical implications for banks will likely extend to treasury operations, asset composition and liquidity planning, though the full scope of the impact will only become clear once the final directive is published.

Bank of Ghana lists 20 shady loan apps

Earlier, YEN.com.gh reported that the Bank of Ghana (BoG) named 20 mobile loan applications that are operating without the necessary authorisation to offer digital credit services in the country.

The central bank shared this in a public notice, warning that the flagged applications are in breach of its Directive for Digital Credit Service Providers in Ghana, which was issued in September 2025.

According to the BoG, the operations of the identified entities represent serious violations spanning customer data privacy, consumer protection standards and broader regulatory requirements.

Source: YEN.com.gh