Non-interest banking can expand financial access for all Ghanaians – BoG Governor

The Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, has called for greater public understanding of non-interest banking, stressing that the financial model is designed to serve customers across religious, cultural and social backgrounds.

He said non-interest banking should not be viewed as a financial system reserved for a particular religious group but as an inclusive commercial banking option that could widen access to financial services and support economic growth.

Speaking through an address delivered on his behalf by Prof. John Gatsi, an advisor to the Bank of Ghana, at the 5th IFRIG International Conference in Accra, Dr. Asiama said the model was founded on ethical and mutually beneficial financing arrangements.

“The answer is clearly no. Non-interest banking is an inclusive banking model that serves customers without discrimination based on religion, ethnicity, culture, or any other social consideration. Rather, it is founded on the shared objective of engaging in ethical and mutually beneficial financing arrangements that promote fairness, transparency, and sustainable economic growth,” he said.

The conference, held under the theme, “Does Non-Interest Banking Belong to a Particular Group?”, brought together stakeholders to discuss the place of non-interest finance in Ghana’s financial system.

Dr. Asiama said the model could attract individuals and businesses who may be excluded from conventional banking because of interest-related concerns or personal preferences.

He identified small-scale enterprises, individuals and entrepreneurs as groups that could benefit from expanded access to alternative financing options.

“Financial inclusion plays a vital role in economic growth,” he said, adding that non-interest banking could complement conventional banking and improve access to financing.

The Governor also noted that the Bank of Ghana had taken steps to operationalise provisions under Section 18(1)(r) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).

He explained that non-interest banking was part of the global financial system and operated on a commercial basis, with interest neither paid nor received.

According to him, the Bank’s experience with non-interest banking in markets such as Kenya, Nigeria, Malaysia, South Africa and the United Kingdom shows that the model can appeal to customers from diverse backgrounds.

The Governor said the Bank remained committed to ensuring that non-interest banking complemented conventional financial services, broadened customer choice and strengthened financial inclusion.

“We firmly believe that, when properly implemented, non-interest banking can complement the conventional financial system, broaden access to financial services, mobilise productive investment, deepen financial inclusion, and contribute meaningfully to Ghana’s socio-economic transformation,” he said.