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. Professor John Gatsi, Advisor to the Governor on Non-Interest Banking and Finance, disclosed that while the initiative will expand financial inclusion, it will operate within a regulatory model that avoids overt religious affiliation and maintains equal access for all citizens.
Speaking during a recent webinar organized by the Chartered Institute of Bankers (CIB) Ghana, Prof. Gatsi said the central bank’s approach is deliberately measured. At the outset, non-interest banking will be limited in scope, excluding microfinance institutions, rural banks, and community banks. The intention is to “start well, have control and manage before escalating,” he explained.
This phased strategy will help the regulator identify implementation challenges early, strengthen compliance systems, and build institutional capacity before expanding the framework to other segments of the financial sector. The cautious rollout reflects lessons learned from financial sector reforms in other jurisdictions where rapid expansion created regulatory gaps.
Central to the Bank’s design is the principle of secular integrity. Prof. Gatsi emphasized 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 be driven by ethical financial practice and inclusivity rather than religious identity.
The regulatory foundation 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.
Liquidity management for non-interest institutions will be guided by asset-backed structures and risk-sharing models rather than conventional interest-based instruments, but will still meet the same prudential benchmarks. This ensures that non-interest banks maintain the same safety and soundness standards as traditional banks while operating under different product structures.
Under the proposed structure, the regulator plans to issue two distinct licenses. 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 are intended to foster competition and innovation while preventing market fragmentation.
The new framework will extend beyond banking to cover capital markets and insurance. Prof. Gatsi noted that BoG is collaborating with other financial sector regulators including the Securities and Exchange Commission (SEC) and National Insurance Commission (NIC) to finalize harmonized guidelines for Sukuk, which are non-interest bonds, and Takaful, which refers to non-interest insurance products.
“We want to ensure that the banking, capital market and insurance frameworks evolve together and not in isolation,” Prof. Gatsi said. The coordinated approach aims to create a cohesive ecosystem for non-interest finance across multiple sectors.
Prof. Gatsi revealed that the draft non-interest banking guideline is currently undergoing internal validation at BoG and will soon be presented to the Governor for review and approval. Publication of the final document is expected by the end of 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, licensing, 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$5 trillion in 2024 and are projected to reach US$7.5 trillion by 2028. The global Sukuk market alone is expected to grow from US$1.08 trillion in 2024 to US$1.295 trillion in 2025, driven by 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. The framework represents a significant evolution in Ghana’s financial sector architecture, balancing innovation with regulatory prudence.
