The Bank of Ghana (BoG) has issued a strong caution against non-interest banking products that fail to meet essential standards for transparency, soundness, and consumer protection. Dr. Johnson Asiama, Governor of the Bank of Ghana, delivered this warning during the inauguration of the Non-Interest Financial Advisory Council (NIFAC).
Dr. Asiama stressed that products should not be accepted simply because they carry a non-interest label. He highlighted the critical need for proper assessment of their structure, inherent risks, associated costs, and customer obligations. The Governor clarified that non-interest finance is not “free finance,” but rather operates through specific mechanisms like trade, leasing, partnerships, and asset-backed transactions.
This initiative forms a crucial part of the Bank of Ghana's broader strategy to establish a robust governance and supervisory framework for the non-interest finance sector. The central bank believes that developing non-interest finance can significantly broaden financial inclusion across Ghana. It offers financial products that align with diverse needs and values, all while upholding the stability of the financial system.
Dr. Asiama emphasized that the success of this new framework will not be measured by the sheer number of new products introduced. Instead, success will be determined by whether these products are sound, useful, and capable of earning public confidence. He urged the newly appointed members of NIFAC to execute their mandate with independence, objectivity, professionalism, and diligence.
The establishment of NIFAC follows the publication of guidelines for the regulation and supervision of non-interest banking in Ghana in January 2026. These guidelines allow existing financial institutions to offer non-interest services through dedicated windows. They also provide for the licensing and supervision of fully-fledged non-interest banking institutions. This regulatory development builds upon Section 18(1R) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), which already provides the legal basis for non-interest banking in the country.
The central bank recognized a growing interest from both financial institutions and the public in non-interest finance. This increased interest made the establishment of NIFAC a necessary next step to ensure the orderly and secure development of the sector. The council will advise the Bank of Ghana on regulatory and supervisory matters for non-interest banking institutions. It will also provide advisory support to other key regulators, including the Securities and Exchange Commission and the National Insurance Commission, as the wider non-interest finance ecosystem expands.
The members of NIFAC include Chairman Prof. Bashir Aliyu Umar, a Nigerian expert. Other members are Dr. Yussuf Adany Al-Badani, Dr. George Baah-Danquah, Adishetu Hamidu Naabo, and Samuel Gameli Gadzo, all prominent Ghanaians. Their collective expertise is expected to guide the sector's growth responsibly. This strategic move by the Bank of Ghana underscores its commitment to fostering innovation in the financial sector while safeguarding consumer interests and maintaining overall financial stability.