Bank of Ghana ready to roll out non-interest banking regulation – Prof. Gatsi

Professor John Gatsi, Advisor to the Governor on Non-Interest Banking, says the Bank of Ghana is fully prepared to roll out the country’s non-interest banking regulation, following the completion of all structural and guideline requirements.

He said the Bank had put in place all the structures and completed the guidelines, adding that only one level of validation at the top management level remained before the regulation was issued.

Professor Gatsi was speaking to the GNA on the sidelines of the Business Leaders’ Forum organised by the Association of Chartered Certified Accountants (ACCA) on the theme: “Sustainability and Non-Interest Banking in Ghana.”

The Forum formed part of ACCA’s commitment to advancing financial sector innovation and promoting sustainable finance in Ghana.

It brought together senior business leaders, policymakers and financial sector stakeholders to explore non-interest banking products, market readiness, policy alignment and strategic partnerships that can drive inclusive and sustainable economic growth.  

He said the rollout would diversify the way trade, projects and infrastructure were financed in the country and create new jobs in the financial sector, particularly in the capital market.

He said conventional banks would open new windows requiring staff with knowledge in non-interest banking, while venture capital and fintech activities were also expected to scale up with time.

“We hope to see a whole lot of benefits rolling out in the financial landscape,” he said.

He explained that the government had been open to non-interest banking and that the framework aligned with national initiatives, including efforts to support young people and women through improved access to finance.

He said the regulator’s focus was to actualise the non-interest banking provisions captured since 2016 and ensure that the sector contributed to broader economic activity.

Mr Jamil Amponah, ACCA’s Africa Director, said the institution’s interest in non-interest banking was driven by its potential to provide strong foundations for building societies, particularly through access to finance.

He described it as an opportunity to diversify financial products and strengthen emerging areas such as green financing, which he noted was still growing globally but had demonstrated business value.

He said the non-interest banking space offered new prospects for professionals and clients, adding that it “creates more opportunities” beyond those available in traditional banking.

He said some African countries already practising non-interest banking had recorded positive experiences, and that the addition of new financing options would increase avenues for revenue generation by banks and insurance companies.

Mr Ampomah said institutions that adopted non-interest banking early would have the first-mover advantage, although others may choose a gradual approach.

He encouraged banks to take up the opportunity, saying “this is a new avenue that broadens access and finance choices for customers.”

Source: GNA

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