BoG to Roll Out Dual Licensing Regime for Non-Interest Banking – Prof John Gatsi
Advisor to the Governor of the Bank of Ghana (BoG) on Non-Interest Banking and Finance, Professor John Gatsi, has disclosed that the central bank will issue two distinct licences to guide the operation of non-interest banking institutions in Ghana.
Speaking at a webinar organised by the Islamic Finance Research Institute of Ghana (IFRIG) on the theme “Non-Interest Banking and Finance: A Pathway to Ethical Banking and Inclusive Growth” on Tuesday, November 4, 2025, Prof Gatsi explained that the two licences will cater for both conventional banks interested in offering non-interest products and fully fledged non-interest banks.
“The BoG will issue two types of licences — one for existing conventional banks that want to deploy non-interest banking products and services under a window, and a full-fledged non-interest banking licence for institutions whose entire operations are based on non-interest principles,” Prof Gatsi stated.
He emphasised that the regulatory framework for non-interest banking has been carefully designed to ensure inclusivity and alignment with Ghana’s secular financial system. To maintain neutrality and transparency, the guidelines prohibit the use of overtly religious names or symbols by licensed non-interest banking institutions.
“The framework is being developed in a secular context. We are not expecting fully fledged non-interest banks to have names that are associated with any religion,” he said, noting that the guidelines aim to ensure “sanity and progress” within the industry.
Prof Gatsi further revealed that the regulatory guidelines for non-interest banking are complete and undergoing internal validation before being presented to the Governor for approval. He added that the regulatory readiness process has involved wide stakeholder consultations, including engagements with Muslim and non-Muslim communities, to ensure a shared understanding of the system.
He also confirmed ongoing collaboration between the BoG, the Securities and Exchange Commission (SEC), and the National Insurance Commission (NIC) to harmonise regulations covering Sukuk (Islamic bonds) and Takaful (non-interest insurance), both of which form integral components of the non-interest financial ecosystem.
“We have brought together these regulatory bodies to form a regulatory committee,” he disclosed. “By the time the BoG finalises its guidelines, the SEC and NIC will also have completed theirs to facilitate full capital market activities and alternative funding sources for infrastructure and business development.”
The Advisor emphasised that Ghana’s transition toward non-interest banking is not experimental but based on proven models in countries such as Nigeria, Malaysia, Kenya, and South Africa. He reiterated that a “window” system has been provided to enable conventional banks to offer non-interest products and retain customers who prefer interest-free financial services.
To strengthen industry capacity, Prof Gatsi announced that the BoG 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 development, and non-interest insurance mechanisms.
He also revealed the establishment of a dual governance structure to ensure compliance with ethical and regulatory standards. The model includes a standard governance framework, as stipulated in the Banking Act, 2016 (Act 930), and an additional layer of oversight to assess the ethical soundness of products offered by non-interest financial institutions.
“This governance structure will ensure that products developed by banks align with non-interest principles. A similar oversight mechanism will exist at the central bank level to uphold the ethical integrity of the system,” Prof Gatsi stated.
Prof Gatsi concluded that the BoG remains committed to operationalising non-interest banking before the close of 2025, positioning Ghana among countries leveraging ethical finance to foster inclusion, stability, and sustainable economic growth.
