Bank of Ghana says non-interest finance can widen access and deepen investment

By Eugene Davis

Bank of Ghana Governor Dr Johnson Pandit Asiama has reaffirmed the central bank’s view that, if properly implemented and regulated, non-interest banking and finance can complement conventional banking, widen access to financial services and mobilise more productive investment in Ghana.

Speaking at an engagement with the Ecumenical Society on Non-Interest Banking and Finance at the Bank Square in Accra, Dr Asiama said the Bank’s interest in non-interest finance was driven primarily by its mandate to promote financial-sector development, stability and inclusion.

“Our focus is on its economic and developmental benefits, including wider access to financial services, product diversity and consumer choice,” he said.

The Governor stressed that non-interest banking should not be seen as a replacement for conventional banking, but as another option within Ghana’s financial system.

The distinction is important in a country where the subject has attracted interest as well as questions, particularly about regulation, governance and the relationship between non-interest finance and religion.

Under Ghana’s regulatory framework, non-interest banking refers to financial intermediation that does not involve the payment or receipt of interest, excessive uncertainty or gambling, and excludes investment in prohibited activities. Its transactions are instead expected to be linked to real economic activity and productive assets.

The products may therefore be structured differently from conventional banking products, but they remain commercial financial products and are subject to regulatory oversight.

The Bank says the framework is built around principles including fairness, transparency, equity and risk-sharing, with the broader objective of linking finance to productive activity, responsible growth and shared prosperity.

Dr Asiama was clear, however, that the Bank’s role is regulatory rather than religious.

“The Bank does not pronounce on religious beliefs; our responsibility is to regulate the institutions and products,” he said.

That regulatory responsibility extends across the financial system. Non-interest financial institutions will be subject to the same broad discipline expected of other regulated institutions, including requirements relating to payment systems, transfers of funds, sources of capital, leadership and governance.

The Bank has also emphasised that no person may conduct non-interest banking business without a Bank of Ghana licence. Products offered by licensed institutions will remain subject to controls designed to protect depositors and preserve the stability of the financial system.

From policy to implementation

A significant step in that process came on 18 August 2026, when the Non-Interest Financial Advisory Council (NIFAC) was established and inaugurated.

Under the Bank’s guidelines, NIFAC will advise the Bank of Ghana on the effective regulation and supervision of non-interest banking institutions. As the broader market develops, the Council may also support coordination with the Securities and Exchange Commission and the National Insurance Commission, helping to promote greater consistency across the financial sector.

The five-member Council includes at least one independent member and at least one woman. Its composition reflects an attempt to combine emerging local expertise with international experience in non-interest banking.

The Council, however, is advisory. Its technical recommendations do not replace the Bank of Ghana’s regulatory, supervisory or enforcement powers.

Nor does the Council confer regulatory authority on any religious institution.

For the Bank, NIFAC represents the point at which the non-interest finance initiative moves beyond policy development towards implementation.

But Dr Asiama acknowledged that regulation alone will not determine whether the framework succeeds. Public understanding and confidence will be equally important.

“Public education cannot be one-way,” he said, describing the engagement with the ecumenical community as an opportunity for the Bank to hear what remains unclear, what safeguards require further explanation and what concerns persist.

The Governor said that where the Bank’s communication had been inadequate, it needed to improve it and respond to questions with facts and respect.

That approach reflects the Bank’s recognition that non-interest finance is entering a financial system serving a religiously and culturally diverse population. The products must therefore be understood not as instruments exclusively for a particular faith community, but as financial options available to anyone who chooses to use them.

Building confidence through consultation

The Bank says that understanding has been built through a series of engagements over the past year with major Christian bodies, including the Christian Council of Ghana, the Ghana Pentecostal and Charismatic Council, the Ghana Catholic Bishops’ Conference and the National Association of Charismatic and Christian Churches, as well as selected churches and Christian civil society organisations.

It has also engaged Islamic leadership and subsequently brought Christian and Islamic leaders together.

Those discussions, according to the Bank, reinforced the need for language and a regulatory framework that are inclusive, respectful of Ghana’s religious diversity and clear that non-interest financial products are available to all.

The ecumenical community has also been an important partner in financial literacy and public education, helping the Bank respond to concerns and improve public understanding of the framework.

The consultation process began formally with the publication of an exposure draft on 9 December 2025. The Bank invited comments and subsequently considered the submissions received before publishing the Guideline for the Regulation and Supervision of Non-Interest Banking in Ghana on 13 January 2026.

Since then, the Bank has produced documentaries and two sets of frequently asked questions covering the guideline and its governance arrangements.

The final framework, the Bank says, reflects assurances given during the early stages of the process.

For Ghana, the test now moves from consultation to execution.

The opportunity is potentially significant: a broader range of financial products, greater consumer choice and new channels for mobilising capital into productive activity. But the credibility of the framework will ultimately depend on whether institutions are well governed, consumers are properly protected, and the public understands both what non-interest finance offers and what it does not.

Dr Asiama said Ghana’s tradition of religious peace provides a useful foundation for that conversation.

“Difficult questions can be discussed with mutual respect,” he said, expressing confidence that continued engagement could make the framework clearer, stronger and worthy of the confidence of Ghanaians.