Bank of Ghana Proposes 100% Liquidity Coverage Ratio for Commercial Banks
Bank of Ghana has drafted a Liquidity Coverage Ratio (LCR) Directive that would require banks to hold liquid assets equal to 100% of projected net cash outflows over a 30‑day stress period.
In Brief
- •Bank of Ghana has drafted a Liquidity Coverage Ratio (LCR) Directive that would require banks to hold liquid assets equal to 100% of projected net cash outflows over a 30‑day stress period.
- •The directive limits the share of Level 2 assets to 40% and Level 2B assets to 15% of high‑quality liquid assets, aiming to prevent over‑reliance on less liquid holdings.
- •Commercial banks must submit comments on the draft by November 30 2026 before the central bank finalises the rule.
- •The proposal seeks to strengthen banks’ resilience to sudden funding pressures and safeguard depositor confidence.
Why It Matters
The 100% LCR target represents a significant tightening of Ghana’s banking regulation, ensuring that commercial banks maintain a full buffer of high‑quality liquid assets to meet potential cash outflows during stress. By imposing composition limits on Level 2 and Level 2B assets, the directive discourages banks from holding assets that may be difficult to liquidate quickly, thereby reducing systemic risk. The rule’s adoption could influence banks’ treasury strategies, lending capacity, and overall financial stability in Ghana’s economy.
Key Details
- Minimum LCR Target
- 100%
- Level 2 Asset Cap
- 40% of HQLA
- Level 2B Asset Cap
- 15% of HQLA
- Comment Deadline
- November 30 2026
- Directive Type
- Liquidity Coverage Ratio (LCR) Directive 2026
What To Watch
Comment submission deadline: November 30 2026
Original Reporting & Sources
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