The advisor to the Governor of the Bank of Ghana on Non-Interest Banking and Finance, Professor John Gatsi, has stated that the capital requirements for establishing non-interest banks in Ghana will adhere strictly to the existing prudential and regulatory standards set by the Central Bank.
He elaborated that institutions aiming to operate in the emerging non-interest banking sector must be fully incorporated in Ghana and have their capital sources thoroughly verified under the regulatory oversight of the Bank of Ghana.
“The regulations are quite explicit. If you intend to establish a bank in Ghana, you must incorporate and subject your capital to scrutiny, whether it is local or foreign, to ensure it originates from an acceptable and transparent source. These provisions are already included in Act 930, and we are not reinventing the wheel,” Prof. Gatsi remarked.
During a Thought Leadership Webinar on Non-Interest Banking and Finance organized by the Chartered Institute of Bankers, Ghana, he emphasized that transparency and adherence to regulations are crucial for fostering public trust and stability in the new system.
Prof. Gatsi revealed that the regulatory guidelines for non-interest banking are finalized and currently undergoing internal validation prior to being submitted to the BoG Governor for approval.
He further mentioned that the process has included extensive consultations with stakeholders from both Muslim and non-Muslim communities to ensure a collective national understanding of the framework.
Under the new regime, the BoG will issue two categories of licenses: one for conventional banks wishing to offer non-interest banking products through a dedicated window, and another for fully-fledged non-interest banks whose operations are entirely based on interest-free principles.
“The framework is being developed within a secular context,” Prof. Gatsi clarified. “We do not anticipate fully-fledged non-interest banks to have names linked to any religion. The objective is to ensure order, inclusion, and advancement within the industry.”
He additionally disclosed the ongoing collaboration among the Bank of Ghana (BoG), the Securities and Exchange Commission (SEC), and the National Insurance Commission (NIC) to align regulations pertaining to Sukuk (Islamic bonds) and Takaful (non-interest insurance), which are essential elements of the wider non-interest financial ecosystem.
“We have united these regulatory authorities to establish a joint committee,” he remarked. “By the time the BoG finalises its guidelines, the SEC and NIC will have also completed their respective guidelines to enable comprehensive participation in the capital market and alternative funding avenues for national development.”
The Advisor also declared that the BoG will conduct a capacity development programme on December 1, 2025, aimed at banks, insurance companies, and capital market participants.
The training will concentrate on Sukuk issuance, product innovation, and mechanisms for non-interest insurance.
He stressed that Ghana’s shift towards non-interest banking is not a trial but is founded on established global models from nations such as Nigeria, Malaysia, Kenya, and South Africa.
“A governance framework will guarantee that all non-interest products adhere to ethical finance principles, bolstered by a central oversight mechanism at the Bank of Ghana,” Prof. Gatsi further stated.
Prof. Gatsi concluded by affirming that the Bank of Ghana is on course to implement non-interest banking before the conclusion of 2025, positioning Ghana among nations that utilize ethical and inclusive finance to promote stability, investment, and sustainable growth.
