• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

Bank of Ghana to Gradually Review Cash Reserve Ratio for Commercial Banks

6 months ago
in Business, Features, highlights, Home, home-news, latest News
2 min read
0 0
0
567
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Bank of Ghana to Gradually Review Cash Reserve Ratio for Commercial Banks

The Governor of the Bank of Ghana, Dr. Johnson Asiama, has announced that the central bank is committed to reviewing the current Cash Reserve Ratio (CRR) for commercial banks.

However, he emphasized that any adjustments must be made gradually to prevent economic disruptions.

“We recognise the impact of the Cash Reserve Ratio on commercial banks and intend to review it critically,” Dr. Asiama stated, assuring that “any adjustments must be phased to avoid unintended economic consequences.”

His remarks were in response to an appeal from the Governing Council of the Ghana Association of Banks (GAB) during a meeting aimed at fostering dialogue between banks and regulators to build trust and consensus on key financial policies.

Background on Cash Reserve Ratio Adjustments

In March 2023, the Bank of Ghana increased the cash reserve ratio on local currency deposits for banks from 12% to 14% as part of efforts to mop up excess liquidity in the financial system.

RelatedPosts

CHAN 2024: Kenya Holds Angola to Draw While DR Congo Claims Vital Win Over Zambia

Teen Sensation Victoria Mboko Stuns Naomi Osaka to Claim Maiden WTA 1000 Title at Canadian Open

Government Unveils Plan to Grow Textile and Garment Industry to $2bn by 2033

During the recent meeting, commercial banks appealed to the central bank to review the CRR, arguing that it was limiting financial intermediation and increasing banking costs.

The discussions also covered Ghana’s credit rating challenges and their impact on correspondent banking relationships. GAB members called for an upward revision of Nostro and affiliate exposure limits to ease constraints on international transactions.

Dr. Asiama acknowledged the difficulties banks face in securing new correspondent banking relationships and committed to further assessing the situation.

Regulation of Foreign Exchange and Money Transfer Operators

The GAB Governing Council urged the Bank of Ghana to discontinue the mandatory sale of foreign exchange proceeds from mining and oil companies to the central bank.

They argued that allowing these proceeds to flow through the banking system would improve foreign exchange price discovery. Dr. Asiama assured them of his commitment to further engagement on the request.

Additionally, the Governor stated that the central bank is working to review the operations of Money Transfer Operators (MTOs) and urged commercial banks to cooperate in streamlining the sector for greater transparency.

He noted the growing influence of MTOs and fintech companies in the remittance business and addressed concerns about regulatory gaps that could lead to foreign exchange losses for the country.

Special Dispensation for Commercial Banks and Agricultural Financing

Dr. Asiama also announced the central bank’s commitment to extending the special dispensation granted to commercial banks during the Domestic Debt Exchange Programme (DDEP).

This assurance followed concerns from banks over the expiration of the special dispensation on restructured cocoa bonds under the DDEP, which is set to end in April 2025. Banks expressed fears that market illiquidity and COCOBOD’s financial position might make it difficult to sell these bonds.

On the issue of rising non-performing loans, Dr. Asiama emphasised the role of fiscal policy in reducing inflation and interest rates.

He also reaffirmed the Bank of Ghana’s commitment to doubling agricultural financing and supporting the Ghana Incentive-Based Risk-Sharing System for Agricultural Lending (GIRSAL) in raising additional guarantee funds.

However, he urged commercial banks to take the lead in stakeholder engagements to improve and de-risk selected agricultural value chains.

Tags: Bank of GhanaBank of Ghana to Gradually Review Cash Reserve Ratio for Commercial BanksCash Reserve Ratio

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

No Result
View All Result

Highlights

Top 10 African Countries With The Least Recovery in GDP From the COVID Year to 2025

GSE Ends Thursday’s Session Higher as Market Capitalisation Gains GHS 2bn

President Mahama’s Speech as he Addresses Nation After Military Helicopter Crash [Full Text]

President Mahama Pledges Full, Transparent Probe into August 6 Military Helicopter Crash

State Funeral for Victims of Military Helicopter Crash Scheduled for August 15 – President Mahama

Black Box of Crashed Military Helicopter Recovered – Ashanti Regional Minister Confirms

Trending

Features

CHAN 2024: Kenya Holds Angola to Draw While DR Congo Claims Vital Win Over Zambia

August 8, 2025

CHAN 2024: Kenya Holds Angola to Draw While DR Congo Claims Vital Win Over Zambia The TotalEnergies...

Teen Sensation Victoria Mboko Stuns Naomi Osaka to Claim Maiden WTA 1000 Title at Canadian Open

August 8, 2025

Government Unveils Plan to Grow Textile and Garment Industry to $2bn by 2033

August 8, 2025

Top 10 African Countries With The Least Recovery in GDP From the COVID Year to 2025

August 8, 2025

GSE Ends Thursday’s Session Higher as Market Capitalisation Gains GHS 2bn

August 8, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.