An advisor to the Bank of Ghana (BoG) Governor on Non-Interest Banking and Finance, Professor John Gatsi, has indicated that 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.

While the initiative will expand financial inclusion, it will do so within a regulatory model that avoids overt religious affiliation and maintains equal access for all citizens. At the outset, non-interest banking will be limited in scope – excluding microfinance institutions, rural banks and community banks.

This phased strategy, he explained, will help the regulator identify implementation challenges early, strengthen compliance systems and build institutional capacity before the framework is expanded to the financial sector’s other segments.

Professor Gatsi noted 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 not be driven by religious identity but by ethical financial practice and inclusivity.

The regulatory foundation for this initiative 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.

Professor Gatsi also explained that liquidity management for non-interest institutions will be guided by asset-backed structures and risk-sharing models rather than conventional interest-based instruments, but still meet the same prudential benchmarks.

The new framework will also extend beyond banking to cover capital markets and insurance. BoG, he noted, is collaborating with other financial sector regulators including the Securities and Exchange Commission (SEC) and National Insurance Commission (NIC) to finalise harmonised guidelines for Sukuk (non-interest bonds) and Takaful (non-interest insurance).

He revealed that the draft non-interest banking guideline is currently undergoing internal validation at the BoG and will soon be presented to the Governor for review and approval. Publication of the final document is expected by end-2025.

To support the rollout, BoG will host a capacity-building programme on December 1, 2025 for banks, insurers and capital market players.