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.
The framework was developed to provide the necessary regulatory and supervisory foundation for the orderly development of the emerging sector.
Non-interest banking is a model of commercial banking based on profit and loss sharing without charging or receiving interest. It often works effectively by adopting a governance structure based 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, stated that 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 NIFAC
The inaugurated five-member Non-Interest Financial Advisory 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.
The other members are a member of the International Islamic Liquidity Management, Dr Yussuf Adam Al-Badəni; a finance and accounting professional, Dr George Baah- Danquah; a Principal Economic Officer at the Ministry of Finance, Adishetu Hamidu Naabo; and a Senior Lecturer at the University of Education, Winneba, Samuel Gameli Gadzo.
The NIFAC is expected to play a key role in the full implementation of Ghana’s non-interest banking and finance framework.
The council’s establishment follows the provisions of the Bank of Ghana’s guideline published in January 2026. The selection of its members is 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 will help strengthen governance, reduce compliance and reputational risks and ensure effective and independent oversight of the emerging non-interest finance industry.
Growing interest
In the past, the legal basis for non-interest banking was provided under Section 18(1r) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), but the Governor said legislation alone was not sufficient to create a functioning market.
“Legal provision alone, just providing for it in the Act, does not create a functioning market,” Dr Asiama said.
He explained that the BoG last year constituted a dedicated team to develop the necessary regulatory and supervisory arrangements for the sector, leading 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.
The Governor added that the inauguration of NIFAC marked the next practical step in the development of the sector, providing the national advisory structure needed to support the orderly growth of non-interest banking and finance in Ghana.
Strong governance
The Advisor on Non-Interest Banking and Finance at BoG, Prof. John Gatsi, said the inauguration of NIFAC was an important step towards the full implementation of the model and ensuring greater inclusiveness in the financial sector.
He said the success of the model would depend on strong governance, credible investment and effective oversight to diversify funding sources and support economic growth.
“The success of non-interest banking in diversifying sources of funding, deepening economies of growth, and ensuring new banking, insurance and capital market jobs depends largely on strong governance and credible investment,” he said.
NIFAC pledges support
For his part, 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.
He expressed optimism that the eventual licensing and commencement of operations by non-interest financial institutions would help diversify sources of capital, deepen financial inclusion and support sustainable economic growth.
