BoG proposes 30-day liquidity buffer requirement for banks

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.

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.

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.