BoG to Introduce Tailored Liquidity Management Tools for Non-Interest Banking – Prof 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 has completed work on a new set of liquidity management instruments tailored for non-interest banking operations.
According to him, the development of these instruments marks a major step in the Bank’s preparations to operationalise the non-interest banking framework in Ghana, ensuring its alignment with broader monetary policy management.
“We are not reinventing the wheel. Our friends in Nigeria and Malaysia have developed liquidity management tools for non-interest banking. We have now designed similar instruments suitable for Ghana’s financial architecture,” Prof. Gatsi stated.
Clarifying further, he noted that the tools differ from conventional, interest-earning liquidity instruments, stressing that “new instruments have been developed specifically for non-interest banking and finance.”
Touching on regulatory oversight, Prof. Gatsi revealed that the BoG has established a dual governance framework to ensure compliance with non-interest banking principles: one operating at the central bank level and another within participating banks.
“These structures will monitor products to ensure adherence to non-interest principles, manage risks, and apply sanctions where necessary,” he explained, adding that the arrangement will be guided by a “Non-Interest Banking and Finance Board,” rather than a traditional Sharia board.
Highlighting the broader economic impact, Prof. Gatsi projected that the rollout of non-interest banking will promote consumer choice, deepen financial inclusion, and support new channels of infrastructure and business financing.
“There will be choice for consumers, greater inclusion, and new ways of financing infrastructure and business development,” he said, calling on investors to show interest in establishing fully-fledged non-interest banks to diversify Ghana’s financial ecosystem.
Prof. Gatsi made these remarks during the NorvanReports Economic Governance Platform (EGP) and Ghana Anti-Corruption Coalition (GACC) X Space discussion on the theme, “Beyond Interest: Can Non-Interest Banking Reshape Ghana’s Financial Future?”.
