Accra: The Bank of Ghana (BoG) has inaugurated the Non-Interest Financial Advisory Council (NIFAC) to provide national-level guidance on the regulation and supervision of non-interest banking and finance in Ghana. The Council will advise the central bank on regulatory and supervisory matters while also providing advisory support to the Securities and Exchange Commission and the National Insurance Commission as the non-interest finance sector develops.
According to Ghana Web, Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, stated that the establishment of NIFAC was part of efforts to create a robust governance framework for the orderly development of the sector. He made the remarks at the inauguration of the Council at the Bank of Ghana's headquarters in Accra. Dr Asiama emphasized that non-interest finance could broaden financial choices for Ghanaians while complementing conventional banking. He explained that non-interest finance is based on trade, leasing, partnerships, and asset-backed transactions, which can expand financial inclusion while protecting consumers and maintaining financial stability.
Dr Asiama noted that although the legal basis for non-interest banking had existed since the passage of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), additional regulatory arrangements were necessary to establish a functioning market. In 2025, the Bank constituted a dedicated team to develop the necessary regulatory and supervisory framework, resulting in the publication of the Guideline for the Regulation and Supervision of Non-Interest Banking in Ghana in January 2026. According to Dr Asiama, the guideline allows existing financial institutions to offer non-interest services through dedicated windows while providing for the licensing and supervision of fully fledged non-interest banking institutions.
He stressed that the Bank of Ghana would continue to draw on international prudential standards and its membership of the Islamic Financial Services Board. Dr Asiama urged members of NIFAC to prioritize sound governance, consumer protection, and public confidence as the sector expands. He cautioned that financial products should not be accepted merely because they carry a non-interest label, emphasizing the importance of transparency and customer understanding of product structures, risks, costs, and obligations.
Dr Asiama highlighted that the success of the initiative would be measured by the soundness and public confidence in the financial products introduced, rather than the number of new products. He noted that non-interest banking institutions would be required to establish their own advisory committees, while NIFAC would operate at the national level. The Council's role is advisory and does not replace the supervisory, enforcement, or regulatory authority of the Bank of Ghana or other sector regulators.
He charged members to exercise independence, objectivity, professionalism, and diligence in their mandate, acknowledging that they would face complex questions requiring assessments of new products and balancing innovation with consumer protection and financial stability. Dr Asiama formally inaugurated the Council pursuant to the new guideline and urged members to focus on the integrity of the framework, the soundness of the financial system, and the public interest.