The Bank of Ghana is set to introduce a new framework aimed at managing interest rate risks in the banking sector.
This framework is part of a comprehensive package of measures aimed at strengthening the resilience of the banking sector, enhancing transparency, and aligning Ghana’s financial system with the highest international standards.
Speaking at the opening of a meeting with Heads of banks, Dr. Johnson Asiama said the BoG will also introduce regulatory measures targeted at credit risk, liquidity, and reserve requirements of commercial banks.
He stressed that the move will help detect vulnerabilities early and put in place protective measures as credit access expands on the back of recent cuts in the policy rate and lending rates.
‘We will also introduce a framework for managing interest rate risk in the banking book, strengthen capital planning through the Internal Capital Adequacy Assessment Process, and embed more robust stress testing to ensure early detection of vulnerabilities,’ he said.
On credit and risk governance, Dr. Johnson Asiama noted that, ‘all banks will be required to identify and take firm action against deliberate defaulters to ensure that credit obligations are honoured.’
