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    Unilever Ghana PLC remains upbeat about future growth prospects

    Citi Business Festival enters final week; forum on agribusiness comes off today

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    Leverage crises to improve fortunes of continent – Ofosu-Dorte

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    Unilever Ghana PLC remains upbeat about future growth prospects

    Citi Business Festival enters final week; forum on agribusiness comes off today

    BoG must enforce regulations on informal forex trading – Prof. Quartey

    DBG will mirror KfW’s successful banking model to benefit SMEs

    Employ targeted-subsidized systems to check macro-economic challenges – Prof. Quartey

    Inflation in Africa: Some subsidy programs prolonging situation – Jeff Gable

    Cedi Summit comes off today at Alisa Hotel

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    Leverage crises to improve fortunes of continent – Ofosu-Dorte

    Unilever Ghana PLC remains upbeat about future growth prospects

    Citi Business Festival enters final week; forum on agribusiness comes off today

    BoG must enforce regulations on informal forex trading – Prof. Quartey

    DBG will mirror KfW’s successful banking model to benefit SMEs

    Cedi Summit comes off today at Alisa Hotel

    BoG’s supply of dollars to BDCs drops from 85% to 21% within 3 months – CBOD

    Societe Generale Ghana launches new ‘boafo loan product’ assist MSMEs

    CBOD calls for a more structured supply of Forex for petroleum products

  • TECHNOLOGY

    BoG, CSA deepen collaboration to fight cyber threats

    Dr. Bawumia unveils Ghana’s first Tier IV data centre

    ADB pioneers in global remittance services in Ghana [ARTICLE]

    Introduction of GhanaPay complements efforts to capture the unbanked into digital payments ecosystem – Veep

    #CitiBusinessFestival: How the country can take advantage of the “Ghana Opportunity”

    Chamber of Telecommunications calls for more investment into Technology to improve livelihoods

    Citi Business Festival: Address lack of financial data challenges using MoMo – Rufai Abdul Majeed

    Citi Business Festival: Acquiring digital skills key to securing employment – Maximus Ametorgoh

    Bank of Ghana commences piloting of digital currency in Sefwi Asafo

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    Gulf central banks, Bank of England raise policy rates after Fed hike

    US Fed meets inflation surge with 75bp hike

    As Nigeria’s inflation rate accelerates to 17.71%, the World Bank warns millions could face extreme poverty

    Modern airline tickets design with flight time and passenger name. Plane tickets vector pictogram. Airline boarding pass template. Vector illustration. The concept of air transportation

    Ticket prices to rise following B.A schedule change on Accra-London-Accra route

    Bawumia calls for more AfDB support as African economies battle global challenges

    Stringent measures needed to deal with illicit financial transactions in Africa – Akufo-Addo

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Primary reserve requirement reduced to 6% to provide liquidity to SDIs

byNerteley Nettey
May 18, 2020
in Banking And Finance, Top Stories
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The Bank of Ghana has reduced the Primary Reserve Requirement for savings and loans companies, finance house companies, and rural and community banks from 8 percent to 6 percent, as well as the 10 percent primary reserve ratio for micro finance companies to 8 percent.

This is part of measures to further provide economic relief to households and businesses, and to increase credit to key sectors of the economy amidst the threat posed by the COVID-19 pandemic.

The Primary Reserve Requirement, which is the minimum amount of cash required to operate a bank, has also been reduced to release liquidity to the Specialized Deposit Taking Institutions (SDI) sector to enable them to support their customers and ensure that the MSME sector and low-income households do not lose access to critical financial services in these uncertain times.

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In a statement issued by the Bank of Ghana, Governor of the Central Bank, Dr. Ernest Addison, explained it was activating “Section 46A of the Bank of Ghana Act 2002 (Act 612) as amended, to provide liquidity support to savings and loans and finance house companies facing temporary liquidity challenges.”

“Eligibility for this facility and the terms and conditions upon which it will be granted will be based strictly on the provisions of section 46A and BOG’s updated liquidity support policy framework,” he added.

He said the COVID-19 pandemic had put a severe strain on the budget, manifesting in petroleum revenue shortfalls as a result of plunging crude oil prices, shortfalls in import duties, other tax revenues, and non-tax revenues, thus the need for the additional measures.

In addition to the reduction of the Primary Reserve Requirement, the regulator stated that, “It would also strengthen the capacity of the ARB Apex Bank to provide liquidity support for rural and community banks facing temporary liquidity challenges in line with a framework to be agreed.”

Microfinance companies who meet eligibility criteria agreed will also qualify for this support from ARB Apex Bank.

It will also extend the deadline for SDIs (MFIs and RCBs) to meet new capital requirements to December 2021.

The Bank will also provide guidance to banks and SDIs on the accounting treatment of loan restructuring, classifications, provisioning, and expected credit losses, and prudential assessments of credit risk and capital ratios.

Such guidance should help banks and SDIs make quicker decisions on customers’ requests for loan restructuring.

“BoG expects fair and equitable treatment of all customers of banks and SDIs at all times, and especially at this time. The Bank will strictly monitor business conduct rules for banks and SDIs in their dealings with customers, particularly in relation to transparency and fairness in revisions to loan terms and conditions, fee charges, and related issues,” it added.

Bank of Ghana keeps policy rate at 14.5 percent amid COVID-19

Meanwhile, the Monetary Policy Committee (MPC) of the Bank of Ghana, has maintained the policy rate at 14.5 percent.

This is the first time the rate has been kept unchanged after it was reduced by 150 basis points early this year.

BoG to sanction banks, other SDIs for misuse of incentives amidst COVID-19 pandemic

Earlier this year, the Bank of Ghana announced that it will not fail to sanction banks and other Specialized Deposit Taking Institutions (SDIs) that fail to efficiently utilize its interventions to increase their liquidity to contain the impact of the coronavirus pandemic.

While these measures were aimed at increasing liquidity of banks and other SDIs, the Bank of Ghana which wants all banks to seek approval for the declaration or payment of dividends for the 2019 year, has cautioned against using proceeds to pay dividends and other distributions to shareholders or purchase government of Ghana and Bank of Ghana securities.

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African Finance Ministers tasked to allocate more resources into education sector

Unilever Ghana PLC remains upbeat about future growth prospects

Citi Business Festival enters final week; forum on agribusiness comes off today

BoG must enforce regulations on informal forex trading – Prof. Quartey

DBG will mirror KfW’s successful banking model to benefit SMEs

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