BoG Finalizes Framework for Non-Interest Banking Rollout
By Praisebell Rosemond Larbi
The Advisor to the Governor of the Bank of Ghana (BoG) on Non-Interest Banking and Finance, Professor John Gatsi, has disclosed that the Central Bank is finalizing regulatory and capital requirement frameworks to pave the way for the full rollout of non-interest banking in Ghana before the end of 2025.
Speaking at a Thought Leadership Webinar on Non-Interest Banking and Finance organized by the Chartered Institute of Bankers, Ghana, Prof. Gatsi said the new framework will strictly adhere to existing prudential and supervisory standards under the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930), ensuring that only credible and well-capitalized institutions are licensed to operate.
“The rules are very clear. If you want to set up a bank in Ghana, you must incorporate and subject your capital to scrutiny, whether local or foreign to ensure it comes from an acceptable and transparent source. These measures are already embedded in Act 930, and we’re not reinventing them,” he emphasized.
He noted that the regulatory guidelines for non-interest banking have been completed and are currently undergoing internal validation before being submitted to the BoG Governor for final approval.
According to him, the process has involved broad stakeholder consultations with both Muslim and non-Muslim communities to guarantee inclusiveness and foster public confidence in the system.
Two-Tier Licensing System
Under the new framework, the BoG will issue two categories of licenses, one for conventional banks that wish to operate non-interest windows alongside their regular activities, and another for fully-fledged non-interest banks that will operate exclusively on interest-free principles.
“The framework is being developed in a secular context. We are not expecting fully-fledged non-interest banks to have names associated with any religion. The goal is to ensure sanity, inclusion, and progress within the industry,” Prof. Gatsi clarified.
He underscored that the move toward non-interest banking is part of Ghana’s wider effort to diversify its financial sector, promote ethical finance, and expand access to financial services for groups that prefer interest-free products.
Cross-Regulator Collaboration
Prof. Gatsi also revealed ongoing collaboration between the Bank of Ghana, the Securities and Exchange Commission (SEC), and the National Insurance Commission (NIC) to harmonize regulations on Sukuk (Islamic bonds) and Takaful (non-interest insurance).
“We have brought together these regulatory bodies to form a joint committee. By the time the BoG finalizes its guidelines, the SEC and NIC will also have completed theirs to enable full capital market participation and alternative funding sources for national development,” he explained.
As part of capacity building, the BoG will host a national training program on December 1, 2025, targeting banks, insurers, and capital market players. The training will focus on Sukuk issuance, product development, and non-interest insurance mechanisms to prepare the industry for rollout.
Prof. Gatsi emphasized that Ghana’s transition is not experimental but anchored on proven international models from Nigeria, Malaysia, Kenya, and South Africa.
“A governance structure will ensure that all non-interest products align with ethical finance principles, supported by a central oversight mechanism at the Bank of Ghana,” he noted.
He concluded that the initiative will place Ghana among the growing list of African countries embracing ethical and inclusive finance, fostering stability, investment, and sustainable growth across the economy.
