Non-interest banking will not replace conventional banking – Dr Johnson Asiama

The Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, has assured Ghanaians that the introduction of non-interest banking will not replace conventional banking but will instead provide an alternative financial option. Dr Asiama said non-interest banking is intended to complement existing banking services by widening the range of financial products available to individuals and businesses. Speaking at an engagement with members of the clergy, the Governor said customers who prefer conventional banking would continue to have access to it, while those interested in non-interest financial products would have another option.

“Properly implemented, the non-interest banking and finance can complement conventional banking,” Dr Asiama said. His comments come amid concerns in sections of the Christian community about the introduction of non-interest banking and whether the framework could give one religion an advantage within Ghana’s financial system. Dr Asiama rejected such concerns, stressing that the Bank of Ghana is not introducing a religious system into the country’s banking sector.

“We regulate institutions and products, not religion” The Governor said the central bank’s responsibility is to regulate financial institutions and the products they offer, rather than pronounce on religious beliefs. He explained that non-interest banking is a commercial financial model that avoids the payment and receipt of interest, excessive uncertainty, gambling and investment in prohibited activities. The products, he said, are structured differently from conventional banking but remain commercial financial products, with an emphasis on fairness, transparency, equity, risk-sharing and transactions backed by real economic activity and productive assets.

Dr Asiama also assured the clergy that non-interest banking institutions would be subjected to regulatory controls designed to protect depositors and the stability of Ghana’s financial system. “No person may carry on non-interest banking business without a Bank of Ghana licence,” he stressed. NIFAC has no Regulatory Power Dr Asiama further clarified the role of the newly established Non-Interest Financial Advisory Council (NIFAC).

The five-member council, inaugurated on August 18, is expected to advise the Bank of Ghana on the regulation and supervision of non-interest banking institutions. However, the Governor stressed tha… Dr Asiama said the framework is intended to provide an additional financial option and should not be viewed as a banking system exclusively designed for Muslims.

Speaking at an engagement with members of the clergy, the Governor said the Bank of Ghana had engaged various religious groups to ensure that the framework and its public communication reflect Ghana’s religious diversity. He said the consultations had reinforced the need for a framework that is “inclusive,” “respectful of Ghana’s religious diversity” and clear that the products are available to everyone. “Those exchanges re-imposed the need for a framework and public language that are inclusive, that are respectful of Ghana’s religious diversity and clear that the products are available to everyone,” Dr Asiama said.