The Bank of Ghana (BoG) has introduced a comprehensive package of regulatory reforms aimed at reinforcing the stability and resilience of the country’s banking sector by tackling credit risks, liquidity shortfalls, and governance gaps.

A central feature of the reforms is a new interest rate risk framework designed to detect vulnerabilities early and safeguard banks against potential shocks. In addition, a strengthened liquidity coverage rule will now require banks to maintain sufficient high-quality liquid assets to survive at least 30 days of financial stress.

Governance and risk management standards have also been tightened. The updated rules cover market conduct, foreign exchange compliance, capital planning, and stress testing — all aimed at improving banks’ operational discipline and customer protection.

In a shift from its heavy reliance on the Cash Reserve Ratio, the BoG will adopt more dynamic open-market operations, including the launch of a 273-day sterilisation bill. This move is expected to improve liquidity management, strengthen monetary policy signals, and provide greater flexibility in responding to market conditions.

The reforms, the central bank says, are part of a holistic effort to align Ghana’s financial system with global best practices. Enhanced liquidity rules and advanced interest rate management tools are expected to boost credit to the private sector, especially in the wake of recent policy rate cuts.

By combining stronger governance, risk controls, and more sophisticated liquidity operations, the BoG aims to reinforce financial stability, improve monetary transmission, and ensure the banking system can better withstand future shocks.