The Bank of Ghana (BoG) has hinted at a gradual review of the Cash Reserve Ratio (CRR) for commercial banks.
This signals a potential policy shift aimed at balancing financial stability with liquidity needs in the banking sector.
Governor, Dr. Johnson Asiama disclosed the central bank’s position during a high-level meeting with the Governing Council of the Ghana Association of Banks (GAB), where key industry challenges were discussed.
“We recognize the impact of the Cash Reserve Ratio on commercial banks and intend to review it critically,” Dr. Asiama stated.
“However, any adjustments must be phased to avoid unintended economic consequences.”
The CRR, currently at 14%, has been a point of contention among banks, which argue that the higher reserve requirement limits financial intermediation and increases operational costs.
The central bank last raised the ratio from 12% in March 2023 as part of efforts to tighten liquidity and stabilise inflation.
While banks have called for a downward revision to ease lending constraints, the BoG remains cautious.
Dr. Asiama acknowledged that any modification to the CRR would consider broader macroeconomic stability, warning against abrupt policy shifts that could trigger market volatility.
Discussions also touched on Ghana’s credit rating challenges and their ripple effects on correspondent banking relationships.
GAB members urged the BoG to adjust Nostro and affiliate exposure limits to ease pressure on international transactions.
“We understand the difficulties banks face in maintaining correspondent relationships and will assess measures to address these concerns,” Dr. Asiama assured.
