Non-interest banking not religious doctrine

The Bank of Ghana (BoG) has assured Ghanaians, particularly the Christian community, that the planned introduction of non-interest banking is a commercial financial initiative and not a mechanism for advancing any religious doctrine.

He said non-interest banking would be open to all Ghanaians regardless of their religious beliefs and would operate alongside conventional banking to expand financial inclusion, consumer choice and access to alternative financial products.

Governor of BoG, Dr Johnson Pandit Asiama, gave the assurance during a strategic engagement with representatives of Ghana’s religious community in Accra, where he sought to clarify concerns surrounding the model and explain the legal and regulatory framework under which it would operate.

The engagement followed concerns in sections of the public, particularly within parts of the Christian community, that non-interest banking could give one religious group an advantage within Ghana’s financial system.

The Governor acknowledged those concerns, saying they were genuine and required frank engagement between the central bank and faith communities.

“The bank is not a regulator of religion, nor is it introducing a new religious category,” Dr Asiama said. He explained that the BoG’s responsibility was simply to provide the regulatory and supervisory framework under which licensed financial institutions could offer non-interest banking as an inclusive and non-discriminatory commercial model.

Alternative, not replacement
Dr Asiama stressed that non-interest banking would not displace conventional banking or compel customers to abandon the existing banking system.

Rather, it would provide an additional option for individuals and businesses seeking financial products structured differently from conventional interest-based banking.

“Properly implemented, the non-interest banking and finance can complement conventional banking,” he said, adding that customers who preferred conventional banking would continue to have access to it, while others could choose non-interest products.

The Governor said the broader objective was to widen the range of financial products available to the public while promoting financial inclusion and greater consumer choice.

‘We regulate institutions, not religion’
Dr Asiama said the BoG’s mandate was to regulate financial institutions and the products they offer, rather than determine or regulate religious beliefs.

He explained that non-interest banking is a commercial financial model that avoids the payment and receipt of interest, excessive uncertainty, gambling and investments in prohibited activities.

Although the products are structured differently from conventional banking, he said they remain commercial financial products, with particular emphasis on fairness, transparency, equity, risk-sharing and transactions backed by real economic activity and productive assets.

The framework, he added, seeks to promote production-based finance, responsible and sustainable growth and shared prosperity—principles he said extend beyond any single religious tradition.

Framework already backed by law
The Governor also sought to dispel the impression that non-interest banking was an entirely new concept being introduced without legislative authority.

He cited Section 18(1)(R) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) as providing the legal basis for financial institutions to offer non-interest banking services.

The Bank of Ghana subsequently developed guidelines to regulate and supervise the sector.
The framework allows existing financial institutions to provide non-interest services through dedicated windows, while also creating a pathway for the licensing of fully fledged non-interest banking institutions.

The central bank has been consulting faith communities following the publication of its non-interest banking framework, with Dr Asiama noting that the consultations had involved the Christian Council of Ghana, Ghana Pentecostal and Charismatic Council, Ghana Catholic Bishops’ Conference, National Association of Charismatic and Christian Churches, Christian civil society organisations, selected churches and Islamic leadership representatives.

He said those engagements had reinforced the need for public communication that respected Ghana’s religious diversity while making clear that non-interest banking products were available to all citizens.

NIFAC advisory, not regulatory
Dr Asiama also clarified the role of the newly established Non-Interest Financial Advisory Council (NIFAC), amid possible concerns about who would exercise authority over the emerging sector.

The five-member council, inaugurated on August 18, is expected to advise the Bank of Ghana on the regulation and supervision of non-interest banking institutions.

However, the Governor stressed that NIFAC would have no power to replace the BoG’s statutory regulatory, supervisory or enforcement responsibilities.

Its role, he said, was to provide technical advice and support the development of the sector within the central bank’s existing governance framework.

Same regulatory discipline
The Governor assured the public that institutions offering non-interest banking would be subjected to the same level of regulatory discipline expected across Ghana’s financial sector.

“The same regulatory discipline applies,” he said, explaining that oversight would cover payment systems, transfers of funds, sources of capital, leadership and governance.

He stressed that no person may carry on non-interest banking business without a BoG licence, while the products would remain subject to safeguards designed to protect depositors and preserve financial-system stability.

Dr Asiama said the central bank’s licensing process remained robust and that consumer protection, transparency and sound governance would be central to the operation of the sector.

From policy to implementation
The Governor described the inauguration of NIFAC in August as an important turning point from policy development towards implementation.

He said properly implemented non-interest banking could complement conventional finance, broaden access to financial services, mobilise investment and contribute to inclusive socio-economic development.

The BoG’s stated objective is therefore to create a wider and more diverse financial system in which customers can choose products that suit their preferences without discrimination or pressure to adopt a particular banking model.

Dialogue needed to prevent misconceptions
The Presidential Envoy for Interfaith and Ecumenical Relations, Mr Elvis Afriyie Ankrah, commended the Bank of Ghana for creating a platform for direct engagement with faith communities.

He said insufficient information could easily produce misconceptions, stressing the importance of dialogue between state institutions and religious leaders.

“Where there is no dialogue, assumptions often take the place of facts,” he observed. Mr Ankrah said the country’s different faith communities might approach issues from varying perspectives, but all had a common interest in promoting peace, stability and prosperity.

He urged institutions and faith communities to continue engaging frankly, honestly and sincerely so that concerns could be addressed before they developed into distrust.

The engagement, he said, had the potential to clarify the framework, strengthen confidence between the central bank and religious communities and serve the broader national interest.

Dr Asiama consequently urged Christian leaders and other stakeholders to continue seeking clarification from the central bank on any aspect of the framework they considered unclear.

He reaffirmed the BoG’s commitment to transparency, consumer protection and regulatory integrity, insisting that non-interest and conventional banking could operate side by side.

The central bank’s message is therefore that non-interest banking should be understood not as a religious system, but as an additional commercial financial model designed to broaden Ghana’s financial landscape while remaining firmly under the supervision and licensing authority of the Bank of Ghana.