BoG Clarifies Scope of Non-Interest Banking Ahead of National Rollout
By Nii Trebi Hammond
As Ghana prepares to formally introduce Non-Interest Banking and Finance into its financial system, the Bank of Ghana (BoG) has moved to clarify that the model is not religion-based and is open to all individuals and businesses who choose to adopt it.
The central bank explained that Non-Interest Banking, often referred to as Islamic Banking, is structured around ethical and asset-backed financial principles rather than religious identity, making its services accessible to the general public.
Under the framework, Non-Interest Banking Institutions (NIBIs) are prohibited from investing in interest-bearing securities or engaging in activities that conflict with non-interest principles. Their reserves and liquid assets must also be held exclusively in instruments that comply with Non-Interest Banking and Finance (NIBF) standards.
The clarification forms part of a broader public engagement by the BoG aimed at addressing misconceptions about the new banking model. During a Question and Answer (Q&A) session on the Guidelines for the introduction of Non-Interest Banking, the central bank explained the rationale behind both the framework and its naming.
According to the BoG, the term “Non-Interest Banking” was adopted after extensive consultations with key stakeholders, including leadership from both Christian and Muslim communities, to ensure the model is viewed as inclusive within Ghana’s diverse religious landscape.
The central bank also announced the issuance of the Guideline for the Regulation and Supervision of Non-Interest Banking in an Exposure Draft on December 9, 2025. The draft, released in accordance with the Procedures for Issuance of Directives, 2020, is open for public and industry input for a minimum of fourteen (14) days and has been published on the Bank’s official website.
Beyond public perception, the BoG outlined the regulatory purpose of the Guideline, stating that, “The Guideline provides the regulatory and supervisory framework for the introduction and operation of Non-Interest Banking (NIB) in Ghana. It aims to support economic growth, deepen financial inclusion, promote sustainable development, and create new jobs, aligning with the Bank’s objectives of price stability, financial stability, and economic development.”
The Guideline further defines the legal scope of non-interest banking activities.
“NIB is defined as a form of banking business consistent with established Non-Interest Banking and Finance (NIBF) principles. It strictly avoids: Riba (interest), Gharar (excessive uncertainty or ambiguity), Maysir (gambling or speculative transactions resembling chance), Financing of prohibited activities. All transactions must be backed by permissible, real economic assets and activities,” it said.
According to the BoG, the framework applies to a wide range of regulated financial institutions, including full-fledged non-interest banks, rural and community banks, specialised deposit-taking institutions, microfinance institutions, FinTech firms and development finance institutions. Conventional banks may also participate by offering non-interest products through dedicated windows or branches.
The Bank of Ghana says the introduction of non-interest banking is intended to broaden financial options, strengthen inclusion and provide alternative financing models within the economy, while remaining accessible to all, regardless of faith.
