Banks have indicated their readiness to swiftly cut interest rates if the Bank of Ghana (BoG) revises the Cash Reserve Ratio (CRR).

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They have also assured that steps will be taken to enhance financial support for businesses, highlighting how the existing policy has affected their cash flow and lending capacity.

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Victor Yaw Asante, the Managing Director and CEO of First Bank Ghana, shared this information on PM Express Business Edition with George Wiafe on February 27, 2025.

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In 2024, the BoG introduced a revised CRR framework, linking reserve requirements to the loan-to-deposit ratio (LDR) of banks.

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This initiative was designed to absorb excess liquidity in the banking sector. Under the updated framework, banks with loan-to-deposit ratios below 40 percent are required to maintain a 25 percent Cash Reserve Ratio (CRR), while those with ratios between 40 and 55 percent must hold 20 percent. Banks that exceed a 55 percent loan-to-deposit ratio are subject to a lower CRR of 15 percent.

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Speaking on the program, Mr. Asante emphasized that if the Bank of Ghana responds favorably to the request, it would greatly enhance banking operations.

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He stated that they had made a strong appeal to the central bank and were hopeful that the issue would be addressed soon.

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“We should also try and deal with expectations as well as manage things in a way that build trust”, Director noted

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In recent months, the Ghanaian cedi has shown relative stability against the US dollar. Mr. Asante stressed the importance of strengthening the country’s export earnings to build foreign reserves. He urged the Bank of Ghana to adopt strategic measures to manage foreign exchange challenges without direct intervention in the market.

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