BoG to enforce strict Capital rules for non-interest banks — Prof. John Gatsi

The Advisor to the Governor of the Bank of Ghana (BoG) on Non-Interest Banking and Finance, Professor John Gatsi, has announced that the capital requirements for setting up non-interest banks in Ghana will strictly adhere to the Central Bank’s existing prudential and regulatory standards.

He explained that all institutions seeking to operate within the emerging non-interest banking space must be incorporated in Ghana and have their capital sources thoroughly verified under the BoG’s regulatory oversight.

“The rules are very clear. If you want to set up a bank in Ghana, you must incorporate locally and subject your capital to scrutiny — whether local or foreign — to ensure it comes from an acceptable and transparent source. These measures are already embedded in Act 930, and we are not reinventing them,” Prof. Gatsi stated.

He made these remarks during a Thought Leadership Webinar on Non-Interest Banking and Finance organised by the Chartered Institute of Bankers, Ghana.

Prof. Gatsi disclosed that the regulatory guidelines for non-interest banking have been completed and are currently undergoing internal validation before being submitted to the Governor for final approval.

He noted that the process has involved extensive stakeholder consultations, including engagements with both Muslim and non-Muslim communities, to ensure a shared national understanding of the framework.

Under the new regime, the BoG will issue two categories of licences — one for conventional banks that wish to offer non-interest banking services through a dedicated window, and another for fully-fledged non-interest banks operating solely on interest-free principles.

“The framework is being developed in a secular context,” Prof. Gatsi clarified. “We are not expecting fully fledged non-interest banks to adopt names associated with any religion. The goal is to ensure inclusivity, transparency, and growth within the financial sector.”

Prof. Gatsi also revealed that the BoG is working closely with the Securities and Exchange Commission (SEC) and the National Insurance Commission (NIC) to harmonise regulations governing Sukuk (Islamic bonds) and Takaful (non-interest insurance) — two key components of Ghana’s emerging ethical finance ecosystem.

“We have formed a joint committee with these regulatory bodies. By the time the BoG finalises its guidelines, the SEC and NIC will also have completed theirs to enable full participation of the capital market and provide alternative funding sources for national development,” he said.

The Advisor announced that the Bank of Ghana will host a capacity development programme on December 1, 2025, for banks, insurance firms, and capital market players. The training will focus on Sukuk issuance, product innovation, and non-interest insurance mechanisms.

He emphasised that Ghana’s transition to non-interest banking is not experimental, but based on proven global models from countries such as Nigeria, Malaysia, Kenya, and South Africa.

“A robust governance structure will ensure that all non-interest products align with ethical finance principles, supported by a central oversight mechanism at the Bank of Ghana,” Prof. Gatsi assured.

He concluded that the BoG is on course to operationalise non-interest banking before the end of 2025, positioning Ghana among nations leveraging ethical and inclusive finance to promote stability, investment, and sustainable economic growth.