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.
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.”
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