By Adnan Adams Mohammed
Regulators have confirmed that the rollout of non-interest banking will not be rushed to meet a year-end deadline, choosing instead to slow the approval process to dismantle public misconceptions about the product and resolve technical policy hurdles.
The decision to extend consultations comes as authorities work to reassure the public that non-interest banking is a purely economic strategy designed to boost financial inclusion, rather than a religious initiative.
Addressing public skepticism surrounding the introduction of the framework, a senior financial authority stressed that the ongoing regulatory work focuses strictly on expanding market access and business diversity.
“I must be quick to add that what we seek to do with non-interest banking has nothing to do with religion,” the authority clarified. “This is the business of things. But that notwithstanding, we are engaging the various segments of society.”
Rather than sticking to a rigid implementation schedule, regulatory committees are using the extended timeframe to engage with critics and align inter-agency standards.
“Yes, there have been some concerns that were raised last month or so, and so there is another level of consultations that are underway,” the official noted. “We have committees that are working, speaking to each other, listening, and addressing concerns to ensure that at the end of the day we are able to create a framework that is fit for purpose and acceptable to all.”
Despite the deliberate delay in finalizing the policy framework, commercial interest remains steady. Officials revealed that two applications one for a standalone institution and another for a window within an existing domestic bank are quietly being processed behind the scenes while the broader policy debate continues.
“We have so far received about two license applications,” the official disclosed. “One is to establish a full-fledged non-interest bank. The second one is from an established local bank that wants to introduce non-interest banking instruments. We are reviewing all those.”
Authorities maintain that achieving widespread acceptance of the new framework takes precedence over fast-tracking market entry, promising that final licensing decisions will only be made once all stakeholders reach a consensus.
“We do not necessarily want to make it time-bound it doesn’t have to be by the end of the year,” the official emphasized. “What’s important is that the consultations are thorough, that we all come into agreement, accept the framework, and then move ahead. On the technical side, we continue to review those applications, and at the right time, we’ll come up with a decision.”
