BoG advances non-interest banking rollout, opens draft regulatory framework for public input

Ghana is inching closer to the full rollout of Non-Interest Banking as the Bank of Ghana (BoG) releases a draft regulatory framework and opens it up for public and industry comments.

The exposure draft, published on December 9, marks one of the most significant steps yet toward diversifying Ghana’s financial system and widening access to affordable, interest-free financial products. Stakeholders have until December 24, 2025, to submit feedback.

The proposed Guideline for the Regulation and Supervision of Non-Interest Banking outlines the operational, governance, and prudential standards that will govern all institutions seeking to operate under the model.

These include full-fledged non-interest banks, specialised deposit-taking institutions, development finance institutions, rural and community banks, and microfinance companies.

Non-Interest Banking typically associated with Islamic finance prohibits interest-based transactions, excessive uncertainty, and speculative activity. Instead, it promotes real-sector economic activity through asset-backed financing models such as leasing (ijara), cost-plus sales (murabaha), partnership-based profit sharing (mudaraba and musharaka), and benevolent loans (qard hassan).

According to the Bank of Ghana, the framework is designed to stimulate real production, deepen financial inclusion, and offer new financing channels for SMEs and underserved households.

It also supports the central bank’s broader stability and financial development agenda.

The draft guideline outlines stringent licensing requirements, governance standards, and risk-management rules. It also includes strict provisions to prevent the commingling of funds between non-interest banking operations and conventional interest-based activities.

To ensure compliance, institutions will be required to establish Non-Interest Banking Advisory Committees, while the BoG will operationalise a Non-Interest Financial Advisory Council to review products, oversee market conduct, and ensure adherence to approved principles.

The guideline further emphasizes consumer protection, transparency, and anti–money laundering safeguards, especially for profit-sharing investment accounts where customers bear part of the investment risk.

With the consultation window now open, industry participants, civil society, and the public are expected to engage actively before the final regulatory framework is issued in 2026 paving the way for Ghana’s entry into a multi-billion-dollar global non-interest finance market.