The Bank of Ghana (BoG) has announced a series of economic reliefs for Specialized Deposit-Taking Institutions (SDI) aimed at increasing access to credit for financing key sectors of the economy such as households and businesses. In a press release dated May 15, 2020, BoG announced a new set of additional measures to further provide economic relief and increase credit to the key sectors of the economy.
The measures introduced by BoG are the activation of section 46A of the BOG Act 2002 (Act 612) as amended, to provide liquidity support to savings and loans and finance house companies facing temporary liquidity challenges.
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.
BoG also extended the deadline for SDIs (MFIs and RCBs) to meet new capital requirements to December 2021.
Among these measure was an 8 percent reduction in primary reserve ratio for savings and loans companies, finance house companies, and rural and community banks to 6 percent, and the 10 percent primary reserve ratio for micro finance companies to 8 percent.
According to BoG, all these measures were introduced to release liquidity to the SDI sector so as to enable them to give assistance to their customers and to ensure that Micro, Small and Medium Enterprises (MSMEs) and low-income households do not lose access to critical financial services especially in times like this.