By Adnan Adams Mohammed
The Bank of Ghana (BoG) is set to issue its first operational license for a non-interest banking institution before the end of 2026.
The milestone follows a rigorous regulatory process designed to seamlessly weave alternative finance into the nation’s existing financial architecture.
Central bank Governor Dr. Johnson Pandit Asiama revealed the timeline during the central bank’s Monetary Policy Committee (MPC) press briefing last week. Responding to a question regarding how the new framework would deepen local financial inclusion and blend into Ghana’s liquidity management framework, Dr. Asiama expressed immense optimism.
“That is something that is dear to my heart,” Dr. Asiama stated. “We are all waiting to see the launch of the first non-interest banking institution. A lot has been done… Hopefully this year we will see the first license.”
Rigorous regulatory oversight
While the introduction of non-interest banking is widely anticipated to absorb a large segment of Ghana’s unbanked population, particularly businesses and individuals seeking ethical alternatives, the apex bank is taking no shortcuts regarding regulatory oversight.
Dr. Asiama assured the public that incoming institutions are undergoing intense scrutiny to guarantee macroeconomic stability.
“They are working very hard, putting in place the structures. The regulatory structures are very, very stringent, I can assure you. This is best practice. So I have no fears about that at all,” the Governor explained.
NIFAC formed to guide governance
Crucial to the operationalization of Non-Interest Banks (NIBs) is the official formation of the Non-Interest Financial Advisory Council (NIFAC). The council is tasked with providing expert, high-level advice on governance and compliance directly to the Bank of Ghana.
In alignment with the central bank’s strict adherence to inclusive corporate governance, information this paper is privy to tells that, two highly respected financial professionals have been appointed to serve as NIFAC members
Appointed NIFAC Member Professional Background Key Specialization
Dr. George Baah-Danquah Fellow, ICAG & CICT; Banking & Treasury Expert Treasury Management, Corporate Governance, Corporate Banking
Adishetu Hamidu Naabo Principal Economic Officer, Ministry of Finance Fiscal Policy, Non-Interest Financial Frameworks, Public Finance
Dr. George Baah-Danquah, a fellow of the Institute of Chartered Accountants, Ghana (ICAG) and the Chartered Institute of Corporate Treasurers (CICT), brings decades of robust banking and treasury experience to the table. Notably, Dr. Baah-Danquah is a devout Christian who worships with the Catholic Church, a testament to the Bank of Ghana’s strategy to ensure that non-interest banking is recognized not as a religious monopoly, but as an inclusive, ethical financial model for all Ghanaians.
Pursuant to the Non-Interest Banking Guidelines, which intentionally mandate gender diversity within its leadership framework, the central bank has also appointed Adishetu Hamidu Naabo. As a Principal Economic Officer at the Ministry of Finance, Naabo has spent years directly spearheading technical state policy on non-interest banking systems.
A collaborative ecosystem
The push toward realizing a functional non-interest banking ecosystem has relied heavily on collaborations between academic experts, state ministries, and internal regulators. During the briefing, Dr. Asiama credited academic and financial expert Professor John Gatsi for his foundational contributions to the development of the framework.
“We give Professor Gatsi a lot of credit for the work he has done,” Dr. Asiama noted.
To safely manage liquidity and integrate these specialized entities into the wider banking system, the central bank’s internal watchdogs are working hand-in-hand with incoming operators.
“The necessary structures are being put in place to ensure that non-interest banking thrives and thrives well. The head of banking supervision is also fully involved,” the Governor assured.
The successful rollout of non-interest banking is anticipated to provide alternative, low-risk capital pools for small and medium-sized enterprises (SMEs), reduce the national unbanked rate, and promote financial diversity within the Ghanaian macro-economy.
