BoG governor urges strict standards for Ghana’s non-interest banking sector
The Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, has warned that non-interest banking products must not be introduced unless they meet clear standards of transparency, financial soundness and consumer protection. Speaking at the inauguration of the Non-Interest Financial Advisory Council (NIFAC), Dr Asiama said products should not be approved simply because they
The Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, has warned that non-interest banking products must not be introduced unless they meet clear standards of transparency, financial soundness and consumer protection. Speaking at the inauguration of the Non-Interest Financial Advisory Council (NIFAC), Dr Asiama said products should not be approved simply because they were presented as non-interest offerings. He said regulators and institutions must examine their structure, risks, costs and obligations to ensure customers could understand them fully. “Products should not be accepted merely because they carry a non-interest label. Their structure, their risks, their costs, their obligations, these have to be transparent and capable of being understood by customers,” Dr Asiama said. He also emphasised that non-interest finance should not be mistaken for “free finance”. Instead, it operates through arrangements including trade, leasing, partnerships and asset-backed transactions. The BoG governor said a properly developed non-interest finance sector could support wider financial inclusion in Ghana. It could give people access to products that reflect different financial needs and values, while ensuring that the stability of the financial system was not compromised. The inauguration of NIFAC is part of the Bank of Ghana’s efforts to create a stronger governance and supervisory structure for non-interest banking and the wider financial sector. The council is chaired by Prof. Bashir Aliyu Umar, who is Nigerian. Its other members are Dr. Yussuf Adany Al-Badani, Dr. George Baah-Danquah, Adishetu Hamidu Naabo and Samuel Gameli Gadzo, all of whom are Ghanaian. NIFAC will advise the Bank of Ghana on issues concerning the regulation and supervision of non-interest banking institutions in Ghana. As the broader non-interest finance sector expands, it will also offer advisory support to the Securities and Exchange Commission and the National Insurance Commission. Ghana already has a legal foundation for non-interest banking. Dr Asiama pointed to Section 18(1R) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), which provides the basis for such activity. However, he said legislation by itself could not establish a functioning market. The Bank of Ghana therefore created a dedicated team to develop the regulatory and supervisory arrangements needed to support the sector. That process resulted in the publication of guidelines in January 2026 for the regulation and supervision of non-interest banking in Ghana. Under the guidelines, existing financial institutions can offer non-interest services through dedicated windows. They also make provision for the licensing and supervision of fully-fledged non-interest banking institutions. Dr Asiama said increasing interest from financial institutions and members of the public had made the creation of NIFAC an important next step in the structured development of the sector. He called on council members to carry out their responsibilities independently and objectively, while maintaining professionalism and diligence. “The success of this initiative will not be measured by the number of new products that are introduced, but by whether those products are sound, useful, and worthy of public confidence,” he said.