BY Adnan Adams Mohammed, Award-Winning Journalist
Hello Bright Simon, I have been inundated with a number of calls by some concerned Ghanaians on the recent development and successes surrounding the Non-Interest Banking and Finance system the Bank of Ghana seeks to operationalize in Ghana in the spirit of secularism to provide equal access to financial products and services to ensure inclusivity.
The journey to Ghana’s Non-Interest Banking and Finance started with a wonderful, participatory stakeholders engagement for wholesome acceptability by Ghanaians, irrespective of religious faith.
This is where I am tempted to believe Bright Simon bereft of knowledge with regards to the various milestones culminating into the ‘Exposure Draft Framework’ he sought to critique but with limited knowledge.
If Mr Simon was to be following the various stages and series of extensive stakeholder consultations across the various segment of the Ghanaian socio-economic facet, he would have been well acquainted to the fact that, the Bank of Ghana did not on its volition to adopt one of the commonly used name ‘Non-Interest Banking’ globally to represent Ghana’s inclusive banking services.
Adoption of ‘Non-Interest Banking and Finance’ name
To put it on record, the adoption of the name ‘Non-Interest Banking and Finance’ was by recommendation of experts, Muslims and Christian clerics at a stakeholder engagement conference. The recommendation became necessary because all interested stakeholders acknowledged for the kind of secular education, governance and economic system that prevail in Ghana, the name situated perfectly to the intent for the introduction of a kind of ‘participatory’ financing system in the country.
It must be made clear that the name or semantics used for such a financial system can take many forms, such as; Ethical financing, Participatory financing, Interest-Free Banking, Sharia-Compliant Finance, Halal Finance etc., so for Mr Simon to misrepresent facts that, Bank of Ghana deliberate adopt the name ‘Non-Interest Banking’ to shy away from using the name ‘Islamic banking’ for acceptability is an act of hasty conclusion without adequate knowledge.
Governance and Oversight
On the governance system of the Non-Interest Banking and Finance which will be regulated by the Bank Finance Ghana and the Securities and Exchange Commission through the Non-Interest Finance Advisory Committee or Council
(NIFAC) and Non-Interest Banking Advisory Committee or Council (NIBAC), I seek to ask Mr Simon that; which book or source of reference indicate that the name of the governance system on Non-Interest Banking and Finance MUST include ‘Sharia’?
Simply put, NIBAC and NIFAC are key components of Ghana’s Non-Interest Banking and Finance framework:
NIBAC: Provides guidance and oversight on non-interest banking operations, ensuring compliance with fair principles and regulatory requirements.
NIFAC: Offers expertise and advice on non-interest finance products and services, promoting innovation and industry growth.
Their functions include: Regulatory compliance: Ensuring adherence to fair principles and regulatory frameworks;
Industry guidance: Providing expertise and advice on non-interest banking and finance;
Risk management: Identifying and mitigating risks associated with non-interest banking and finance; and
Product development: Supporting innovation and development of new products and services.
These committees play a crucial role in promoting Ghana’s non-interest banking and finance sector.
To this, I ask Mr Simon, where does the non-use of ‘sharia’ in the name of the oversight committees make the inclusive, participatory financial system ‘null and void’?
As an award-winning financial journalist with extensive knowledge of Islamic Banking and Finance, I strongly condemn the baseless and divisive critique of Ghana’s non-interest banking framework by Bright Simons.
I deem his approach to be undermining the effort of the present government’s initiative to pursue a financial inclusive economy as a clear example of religious intolerance and a desperate attempt to stifle financial inclusion.
Ghana is a secular state with a diverse population, and it is our duty to ensure that our financial system is inclusive and caters to the needs of all citizens, regardless of their faith or background.
The introduction of non-interest banking is a welcome development that will provide Ghanaians with alternative financial products and services that align with their values and beliefs.
I urge all Ghanaians to reject Bright Simons’ divisive rhetoric and support the Bank of Ghana’s efforts to promote financial inclusion and diversity.
We must stand together to build a Ghana where everyone has access to financial services, regardless of their background or faith.
