Bank of Ghana Proposes 100 Percent Liquidity Coverage Ratio

The Bank of Ghana has proposed the Liquidity Coverage Ratio (LCR) Directive, 2026, which would mandate that banks maintain a liquidity coverage ratio of at least 100 percent. This requirement would force banks to hold sufficient high-quality liquid assets, including cash, eligible government securities, and qualifying balances with the central bank, to cover projected net cash outflows during a 30-day period of significant financial stress.

The measure is designed to ensure that banks can meet short-term obligations and customer withdrawal demands without triggering wider instability across the banking sector. This initiative is part of a broader set of regulatory reforms that include a complementary Credit Risk Management Directive intended to strengthen lending processes and overall risk management.

The proposal is currently an exposure draft open for public consultation. Stakeholders have until November 30, 2026, to provide feedback. If the directive is finalized, the Bank of Ghana proposes an effective date of September 1, 2027, with a requirement for banks to align their systems by August 31, 2027.