The Bank of Ghana is unveiling a robust set of regulatory reforms aimed at enhancing banking sector stability by addressing credit risks and liquidity shortfalls.
These measures are designed to fortify risk governance and improve resilience in Ghana’s financial system.
The Bank of Ghana has rolled out a set of regulatory reforms aimed at strengthening the resilience of the banking sector.
A new interest rate risk framework will allow earlier detection of vulnerabilities, while a liquidity coverage rule now requires banks to hold enough high-quality liquid assets to withstand 30 days of stress.
Governance and risk management standards have been tightened, with updated rules on marketing conduct, foreign exchange compliance, capital planning, and stress testing.
The central bank is also shifting from heavy reliance on the Cash Reserve Ratio to more dynamic open-market operations, including the introduction of a 273-day sterilisation bill to manage liquidity and reinforce policy signals.
These reforms reflect the Bank of Ghana’s holistic commitment to strengthening financial stability and aligning with international standards.
Enhanced liquidity rules and sophisticated interest rate management tools will support increased credit to the private sector, especially following recent policy rate cuts.
Meanwhile, the move to dynamic OMOs suggests better control over monetary transmission and systemic flexibility.
Source: Myxyzonline.com
