The Bank of Ghana (BoG) has established the regulatory framework for the licensing of fully fledged non-interest banking institutions, potentially paving the way for new players and products in the country's financial sector.
The regulatory framework, published in January 2026, allows existing financial institutions to offer non-interest banking services through dedicated windows, while also providing for fully fledged institutions. It was developed to give the emerging sector the regulatory and supervisory foundation needed for orderly development.
Non-interest banking is a model of commercial banking based on profit and loss sharing without charging or receiving interest, often operating through a governance structure built on non-interest banking and finance principles.
Inaugurating the Non-Interest Financial Advisory Council (NIFAC) at the Bank Square in Accra last Tuesday, the Governor of BoG, Dr Johnson Pandit Asiama, said the guideline provides for existing financial institutions to offer non-interest services through dedicated windows. "It also provides for the licensing and supervision of fully fledged non-interest banking institutions," he said.
The inaugurated five member council is chaired by Prof Bashir Aliyu Umar, a former Special Advisor on Non-Interest (Islamic) Banking to the Governor of the Central Bank of Nigeria. Its other members are Dr Yussuf Adam Al-Badani, a member of the International Islamic Liquidity Management; Dr George Baah-Danquah, a finance and accounting professional; Adishetu Hamidu Naabo, a Principal Economic Officer at the Ministry of Finance; and Samuel Gameli Gadzo, a Senior Lecturer at the University of Education, Winneba.
NIFAC is expected to play a key role in the full implementation of Ghana's non-interest banking and finance framework. Its establishment follows the provisions of the BoG's guideline published in January 2026, with members selected based on expertise, experience, local content, cross border learning, religious neutrality and inclusiveness. The council comprises four Ghanaians and one Nigerian, with expertise spanning Islamic finance, banking, accounting, economics, liquidity management and financial strategy.
The council's work will be largely advisory but is expected to help strengthen governance, reduce compliance and reputational risks, and ensure effective, independent oversight of the emerging non-interest finance industry.
Dr Asiama said that although the legal basis for non-interest banking has existed since 2016 under Section 18(1r) of the Banks and Specialised Deposit-Taking Institutions Act (Act 930), legislation alone was not enough to create a functioning market. "Legal provision alone, just providing for it in the Act, does not create a functioning market," he said, explaining that the BoG last year set up a dedicated team to develop the necessary regulatory and supervisory arrangements, which led to the publication of the new guideline in January this year. "Since the publication of the guideline, we have seen growing interest from financial institutions and, of course, the public," he said, adding that NIFAC's inauguration marked the next practical step in building the national advisory structure needed to support the sector's orderly growth.
The Advisor on Non-Interest Banking and Finance at BoG, Prof John Gatsi, said the inauguration of NIFAC was an important step toward the full implementation of the model and toward greater inclusiveness in the financial sector. He said the model's success in diversifying funding sources, deepening economic growth and creating new banking, insurance and capital market jobs would depend largely on strong governance and credible investment.
Prof Umar said Ghana could draw valuable lessons from the experience of other countries, particularly Nigeria, in developing and regulating non-interest banking. He pledged the council's commitment to supporting the Bank of Ghana in building a credible and sustainable non-interest finance sector through professionalism, independence, consistency and diligence, and expressed optimism that the eventual licensing and commencement of non-interest financial institutions would help diversify sources of capital, deepen financial inclusion and support sustainable economic growth.
