The Bank of Ghana (BoG) has declared provision of liquidity backing to banks, savings and loans organizations, and financial institutions in the country.
This intercession is an exertion by the Central Bank to keep cash streaming in spite of the close stop on the business activity because of the Coronavirus pandemic.
The Bank of Ghana’s siphoning of liquidity into the financial system is intended to give economic alleviation to family households and organizations as well as increment credit to key parts of the economy.
Therefore, this move is in accordance with the actuation of the Section 46A (1) of the BoG (Amendment) Act 2016 (Act 918) to give crisis liquidity help.
The Bank may, for the purpose of section 3(2) (c) of the Act, give liquidity help to banks, savings and loans companies and financial firms, which the Bank had determined to be illiquid but dissolvable.
Furthermore, the BoG expected to reinforce the limit of ARB Apex Bank to give liquidity backing to provincial and network banks confronting impermanent liquidity challenges in accordance with concurred system.
According to the BoG, microfinance organizations who meet qualification standards concurred will also fit the bill for this assistance from ARB Apex Bank.