BoG proposes new rules to ensure banks can always pay customers when they need their Money

The Bank of Ghana (BoG) has proposed a new regulatory requirement that would compel banks to maintain sufficient high-quality liquid assets to cover their projected net cash outflows over a 30-day period of financial stress.

How the proposed liquidity requirement would work The LCR would be calculated by dividing a bank’s stock of eligible high-quality liquid assets by its total net cash outflows over the next 30 calendar days.

This means their stock of eligible, unencumbered high-quality liquid assets must be sufficient to cover their total net cash outflows projected over the next 30 calendar days under prescribed stress conditions.