As the Bank of Ghana (BoG) prepares to lay a comprehensive framework in parliament soon for the introduction of Non-Interest Banking and Finance to expand financial inclusion, it assures that it will do so within a regulatory model that avoids overt religious affiliation and maintains equal access for all citizens.
This is to help preserve the nation’s secular identity and promote market neutrality across the financial system.
Giving some insights on the operational modalities, the advisor to the Governor, Professor John Gatsi, noted that the capital requirements for establishing non-interest banks in Ghana will strictly follow the central bank’s existing prudential and regulatory standards and would have to be fully incorporated in Ghana and have their capital sources thoroughly verified under the Bank of Ghana’s regulatory oversight.
“The rules are very clear. If you want to set up a bank in Ghana, you must incorporate and subject your capital to scrutiny whether local or foreign to ensure it comes from an acceptable and transparent source. These measures are already embedded in Act 930, and we’re not reinventing them,” Prof. Gatsi said.
Speaking during a Thought Leadership Webinar on Non-Interest Banking and Finance organised by the Chartered Institute of Bankers, Ghana, he stressed that transparency and regulatory compliance are key to building public trust and stability in the new system.
According to the central bank, the regulatory guidelines for non-interest banking are complete and currently undergoing internal validation after extensive stakeholder consultations with both Muslim and non-Muslim communities to ensure a shared national understanding of the framework.
The NIBF regime, when operationalised will issue two types of licenses: one for conventional banks seeking to offer non-interest banking products through a dedicated window, and another for fully-fledged non-interest banks whose operations are entirely based on interest-free principles.
“The framework is being developed in a secular context,” Prof. Gatsi clarified. “We are not expecting fully fledged non-interest banks to have names associated with any religion. The goal is to ensure sanity, inclusion, and progress within the industry.”
He further revealed ongoing collaboration between the BoG, the Securities and Exchange Commission (SEC), and the National Insurance Commission (NIC) to harmonise regulations governing Sukuk (Islamic bonds) and Takaful (non-interest insurance) as key components of the broader non-interest financial ecosystem.
“We have brought together these regulatory bodies to form a joint committee,” he noted. “By the time the BoG finalises its guidelines, the SEC and NIC will also have completed theirs to facilitate full capital market participation and alternative funding sources for national development.”
The Advisor also announced that the BoG will host a capacity development programme on December 1, 2025, for banks, insurance firms, and capital market players.
The training will focus on Sukuk issuance, product development, and non-interest insurance mechanisms.
He emphasised that Ghana’s transition to non-interest banking is not experimental but based on proven global models from countries such as Nigeria, Malaysia, Kenya, and South Africa.
“A governance structure will ensure that all non-interest products align with ethical finance principles, supported by a central oversight mechanism at the Bank of Ghana,” Prof. Gatsi added.
At the outset, non-interest banking will be limited in scope – excluding microfinance institutions, rural banks and community banks.
According to him, the central bank’s intention is to “start well, have control and manage before escalating”.
This phased strategy, he explained, will help the regulator identify implementation challenges early, strengthen compliance systems and build institutional capacity before the framework is expanded to the financial sector’s other segments.
The regulatory foundation for this initiative draws from Act 930, the Banks and Specialised Deposit-Taking Institutions Act, 2016, which already provides for key prudential standards including anti-money laundering (AML) provisions, liquidity management and sources of capital.
These statutory provisions will remain fully applicable to non-interest banks, ensuring consistency with the broader financial system.
Additionally, liquidity management for non-interest institutions will be guided by asset-backed structures and risk-sharing models rather than conventional interest-based instruments but will still meet the same prudential benchmarks.
Under BoG’s proposed structure, the regulator plans to issue two distinct licences. The first will allow conventional banks to operate non-interest ‘windows’, enabling them to offer non-interest financial products alongside traditional services. The second will be for full-fledged non-interest banks, which will operate entirely within the non-interest framework.
These measures, Prof. Gatsi said, are intended to foster competition and innovation while preventing market fragmentation.
A two-tier governance model will be applied for the new system. Each institution will have its own internal governance committee responsible for vetting non-interest products, while a central oversight body at BoG will validate compliance with ethical and prudential standards. “Governance is at the heart of non-interest banking,” he noted.
Globally, the non-interest finance industry continues to expand. According to Standard Chartered, Islamic finance assets surpassed US$5trillion in 2024 and are projected to reach US$7.5trillion by 2028. The global Sukuk market alone is expected to grow from US$1.08trillion in 2024 to US$1.295trillion in 2025, on rising investor appetite for ethical, asset-backed financial instruments.
By Adnan Adams Mohammed
