The Bank of Ghana (BoG) is preparing to introduce a comprehensive framework for non-interest banking that preserves the nation’s secular identity and ensures market neutrality across the financial system, disclosed Professor John Gatsi, Advisor to the Governor on Non-Interest Banking and Finance.
He noted that while the initiative will expand financial inclusion, it will do so within a regulatory model that avoids overt religious affiliation and maintains equal access for all citizens.
Speaking during a recent webinar organised by the Chartered Institute of Bankers (CIB) Ghana, Prof. Gatsi said BoG’s approach is deliberately measured.
At the outset, non-interest banking will be limited in scope – excluding microfinance institutions, rural banks and community banks.
According to him, the central bank’s intention is to “start well, have control and manage before escalating”.
This phased strategy, he explained, will help the regulator identify implementation challenges early, strengthen compliance systems and build institutional capacity before the framework is expanded to the financial sector’s other segments.
Central to the Bank’s design is the principle of secular integrity. Prof. Gatsi noted that institutions seeking to operate under the new regime must not use names or branding that suggest any religious association – whether Islamic, Christian or otherwise.
“We must preserve neutrality of the market,” he said, noting that non-interest banking in Ghana will not be driven by religious identity but by ethical financial practice and inclusivity.
The regulatory foundation for this initiative draws from Act 930, the Banks and Specialised Deposit-Taking Institutions Act, 2016, which already provides for key prudential standards including anti-money laundering (AML) provisions, liquidity management and sources of capital.
Prof. Gatsi said these statutory provisions will remain fully applicable to non-interest banks, ensuring consistency with the broader financial system.
He explained that liquidity management for non-interest institutions will be guided by asset-backed structures and risk-sharing models rather than conventional interest-based instruments, but still meet the same prudential benchmarks.
Under BoG’s proposed structure, the regulator plans to issue two distinct licences. The first will allow conventional banks to operate non-interest ‘windows’, enabling them to offer non-interest financial products alongside traditional services. The second will be for full-fledged non-interest banks, which will operate entirely within the non-interest framework.
These measures, Prof. Gatsi said, are intended to foster competition and innovation while preventing market fragmentation.
The new framework will also extend beyond banking to cover capital markets and insurance. BoG, he noted, is collaborating with other financial sector regulators including the Securities and Exchange Commission (SEC) and National Insurance Commission (NIC) to finalise harmonised guidelines for Sukuk (non-interest bonds) and Takaful (non-interest insurance).
“We want to ensure that the banking, capital market and insurance frameworks evolve together and not in isolation,” Prof. Gatsi said.
He revealed that the draft non-interest banking guideline is currently undergoing internal validation at the BoG and will soon be presented to the Governor for review and approval. Publication of the final document is expected by end-2025. The guideline will define licensing requirements, governance structures, operational standards, and product approval processes.
To support the rollout, BoG will host a capacity-building programme on December 1, 2025 for banks, insurers and capital market players. The event will focus on Sukuk structuring, non-interest product development, licencing and governance models as part of a broader education and compliance strategy.
Prof. Gatsi also described a two-tier governance model for the new system. Each institution will have its own internal governance committee responsible for vetting non-interest products, while a central oversight body at BoG will validate compliance with ethical and prudential standards. “Governance is at the heart of non-interest banking,” he noted.
Globally, the non-interest finance industry continues to expand. According to Standard Chartered, Islamic finance assets surpassed US$5trillion in 2024 and are projected to reach US$7.5trillion by 2028. The global Sukuk market alone is expected to grow from US$1.08trillion in 2024 to US$1.295trillion in 2025, on rising investor appetite for ethical, asset-backed financial instruments.
“This is not merely an experiment. It is about deepening financial inclusion and creating space for alternative forms of finance that align with Ghana’s secular and regulatory principles,” Prof. Gatsi asserted.
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