Ghana's central bank is tightening its grip on how the country's commercial banks manage cash — and the new rules could fundamentally reshape how banks hold their reserves.
The Bank of Ghana (BoG) published an exposure draft on October 9, 2026, proposing the Liquidity Coverage Ratio (LCR) Directive, 2026 — a framework that would compel banks to keep enough high-quality liquid assets to cover all projected net cash outflows over a 30-day stress period. The draft is open for comment from the banking industry and the general public until November 30, 2026.
The consultation is being conducted under the BoG's Procedures for Issuance of Directives, 2020, and the central bank has invited stakeholders to submit feedback through its official website.
What the Directive Actually Requires
At the core of the proposal is a simple but demanding rule: banks must maintain an LCR of at least 100 per cent at all times. That means for every cedi of projected cash outflow over the next 30 calendar days — under stress conditions — a bank must already hold an equivalent amount in qualifying liquid assets.
The LCR would be calculated by dividing a bank's stock of eligible high-quality liquid assets by its total net cash outflows over that 30-day window. Assets that qualify must be convertible to cash quickly, with little or no loss of value, and must be free from any restrictions that would block their use during a crisis.
The BoG's draft identifies cash, qualifying balances held with the Bank of Ghana, and eligible government securities as primary qualifying assets. Other securities may also count, subject to specified conditions and regulatory haircuts — the discounts applied to reflect the risk that an asset might be worth less when sold in a hurry.
Stress-Testing and Outflow Scenarios
The directive does not just set a number and walk away. Banks would be required to actively assess potential cash outflows arising from deposit withdrawals, reduced access to wholesale funding, maturing financing obligations, and customers drawing down on pre-approved credit lines.
Beyond the standard supervisory requirement, banks would also need to run their own internal liquidity stress tests — including scenarios that go further and hit harder than the 30-day minimum set by regulators. That is the BoG signalling it wants banks to plan for the worst, not just what the rulebook demands.
According to the draft, the framework is designed to improve the sector's capacity to absorb financial and economic shocks while reducing the risk that a liquidity crisis in one bank bleeds into the broader economy — a scenario Ghana has lived through before.
September 2027 Implementation Target
If the directive is finalised as proposed, September 1, 2027 is the target effective date. Banks would need to align their internal policies, processes, and systems with the new provisions well before that deadline.
The proposal aligns Ghana's regulatory approach with global banking standards set under the Basel III framework, which introduced the LCR requirement after the 2008 financial crisis exposed how quickly banks could run dry when markets froze. Many African central banks have moved to adopt similar requirements in recent years, and BoG's move signals a continued push toward international best practice.
With the public comment window open until the end of November, the banking industry now has roughly seven weeks to weigh in before the BoG moves toward finalising the rules.