The Bank of Ghana has announced a set of regulatory reforms aimed at strengthening liquidity risk management, interest rate oversight, and capital planning within the country’s banking sector.

In an engagement with CEOs of banks on August 13, 2025, Dr Johnson Asiama stated that a new Liquidity Risk Management Directive will soon be introduced, requiring all banks to maintain sufficient High-Quality Liquid Assets (HQLA) to withstand a 30-day stress scenario.

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“The forthcoming Liquidity Risk Management Directive will mandate that banks hold sufficient High-Quality Liquid Assets to cover 30-day stress scenarios. This measure will also close loopholes that have allowed the artificial reduction of reserve requirements, including the misclassification of deposits as borrowings, and will clarify the treatment of e-money float accounts,” he said.

He added that, in addition to tightening liquidity oversight, the Central Bank will soon roll out a framework for managing interest rate risk in the banking book.

“We will also introduce a framework for managing interest rate risk in the banking book, strengthen capital planning through the Internal Capital Adequacy Assessment Process, and embed more robust stress testing to ensure early detection of vulnerabilities,” he stated.

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On the review of strategic business models, Dr Asiama stressed that the move will ensure a forward-looking assessment of the sustainability of banks’ strategies, requiring full engagement from boards and senior management.

SP/MA

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