BoG inaugurates council to guide regulation of non-interest banking

The Bank of Ghana (BoG) has inaugurated the Non-Interest Financial Advisory Council (NIFAC) to provide national-level guidance on the regulation and supervision of non-interest banking and finance in Ghana.

The Council will advise the central bank on regulatory and supervisory matters while also providing advisory support to the Securities and Exchange Commission and the National Insurance Commission as the non-interest finance sector develops.

Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, said the establishment of NIFAC was part of efforts to create a robust governance framework for the orderly development of the sector.

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He made the remarks at the inauguration of the Council at the Bank of Ghana’s headquarters in Accra on Tuesday, August 18, 2026.

Dr Asiama said non-interest finance could broaden financial choices for Ghanaians while complementing conventional banking.

“Non-interest finance widens that choice. It is not free finance, but a complement to conventional banking based on trade, leasing, partnerships and asset-backed transactions,” he said.

He added that the system could expand financial inclusion while protecting consumers and maintaining financial stability.

The Governor said although the legal basis for non-interest banking had existed since the passage of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), additional regulatory arrangements were required to establish a functioning market.

In 2025, the Bank constituted a dedicated team led by its Advisor on Non-Interest Banking and Finance to develop the necessary regulatory and supervisory framework.

The work resulted in the publication, in January 2026, of the Guideline for the Regulation and Supervision of Non-Interest Banking in Ghana.

According to Dr Asiama, the guideline allows existing financial institutions to offer non-interest services through dedicated windows while also providing for the licensing and supervision of fully fledged non-interest banking institutions.

He said the Bank would continue to draw on international prudential standards and its membership of the Islamic Financial Services Board.

Dr Asiama urged members of NIFAC to prioritise sound governance, consumer protection and public confidence as the sector expands.

He cautioned that financial products should not be accepted simply because they carry a non-interest label.

“Products should not be accepted merely because they carry a non-interest label. Their structure, risks, costs and obligations must be transparent and capable of being understood by customers,” he explained.

He said the success of the initiative would not be measured by the number of new products introduced but by whether they were sound, useful and worthy of public confidence.

The Governor noted that non-interest banking institutions would be required to establish their own advisory committees to guide their boards and management, while NIFAC would operate at the national level.

He said the Council’s role was advisory and would not replace the supervisory, enforcement or regulatory authority of the Bank of Ghana or other sector regulators.

Dr Asiama charged members to exercise independence, objectivity, professionalism and diligence in carrying out their mandate.

“The questions that will come before you will not always have simple answers. You will be required to assess new products, interpret principles in changing market conditions and balance innovation with consumer protection and financial stability,” he said.

He formally inaugurated the Council pursuant to the new guideline and urged members to ensure that their work remained focused on the integrity of the framework, the soundness of the financial system and the public interest.

MA