The Bank of Ghana has signalled a firm regulatory approach to the emerging non interest banking industry, with Governor Dr Johnson Pandit Asiama cautioning financial institutions against introducing products that fail to satisfy rigorous standards of transparency, institutional soundness and consumer protection.
Dr Asiama issued the warning at the inauguration of the Non Interest Financial Advisory Council, where he stressed that financial products must undergo thorough scrutiny rather than receive approval simply because they are presented under the non interest banking model. He maintained that the underlying structure of each product, together with its associated risks, charges and contractual obligations, must be clearly disclosed and sufficiently comprehensible to customers.
The Governor explained that the absence of conventional interest charges should not be misconstrued as an absence of financial cost or risk. Rather, non interest finance operates through alternative commercial arrangements that include trade transactions, leasing structures, partnerships and financing backed by tangible assets.
He said the careful development of the sector could significantly expand financial inclusion by giving individuals and businesses access to alternative financial arrangements that correspond with varying economic requirements and personal values, while ensuring that the stability and integrity of Ghana’s financial system remain protected.
The establishment of the Non Interest Financial Advisory Council consequently represents an important component of the Bank of Ghana’s broader effort to create a robust governance and supervisory architecture for the developing industry. Under the regulatory framework, the Council is expected to advise the central bank on matters concerning the effective regulation and supervision of non interest banking institutions in Ghana. It is also expected to provide advisory assistance to the Securities and Exchange Commission and the National Insurance Commission as the wider non interest financial market expands.
The Council is chaired by Professor Bashir Aliyu Umar of Nigeria, while its other members are Dr Yussuf Adany Al Badani, Dr George Baah Danquah, Adishetu Hamidu Naabo and Samuel Gameli Gadzo, all of Ghana.
Dr Asiama noted that Ghana already possesses a statutory foundation for non interest banking through Section 18 subsection 1R of the Banks and Specialised Deposit Taking Institutions Act, 2016, Act 930. He nevertheless emphasised that the existence of enabling legislation, by itself, could not guarantee the successful establishment of a functional and credible market.
The central bank therefore embarked on the development of a dedicated regulatory and supervisory structure to provide the necessary safeguards for the sector. This process culminated in the issuance of the Guideline for the Regulation and Supervision of Non Interest Banking in Ghana, which became effective in January 2026 and establishes the requirements governing institutions that wish to provide non interest banking services.
The framework permits existing financial institutions to offer non interest banking services through dedicated windows, while also creating a regulatory pathway for the establishment and licensing of fully fledged non interest banking institutions. It further requires non interest banking products and services to undergo appropriate review and approval before they can be introduced to the market.
The regulatory architecture also places the Non Interest Financial Advisory Council at the centre of the supervisory framework. The Bank of Ghana’s guideline states that the Council is responsible for advising the central bank on the effective regulation and supervision of non interest banking institutions, while it may also serve in an advisory capacity to the Securities and Exchange Commission and the National Insurance Commission until sufficient specialist expertise has developed across the wider industry.
The move comes amid growing institutional interest in non interest banking in Ghana. In May 2026, Dr Asiama disclosed that one indigenous bank had formally applied for a non interest banking licence, while four additional financial institutions were preparing applications, raising expectations that Ghana could see its first licensed non interest banking institution during the year.
The Governor has consistently maintained that the emerging sector must be supported by stringent regulatory safeguards. The Bank of Ghana’s framework allows financing structures based on mechanisms such as cost plus sales, leasing, profit sharing partnerships and other asset backed arrangements, while placing considerable emphasis on governance, risk management, transparency and customer protection.
Dr Asiama therefore urged members of the newly constituted Council to approach their responsibilities with independence, impartiality, professionalism and diligence as they help shape a sector that is still at an early stage of development.
He stressed that the ultimate measure of the initiative should not be the volume of financial products introduced into the Ghanaian market, but rather whether those products demonstrate genuine financial soundness, provide meaningful value to customers and earn the confidence of the public.
The Governor’s position effectively places consumer confidence and regulatory integrity at the heart of Ghana’s transition towards non interest banking, as the Bank of Ghana seeks to expand financial choice without compromising the prudential standards expected across the country’s financial system.
