The Bank of Ghana took a major step forward towards its target of issuing its first non-interest banking license before the end of this year, when it inaugurated the Non-Interest Financial Advisory Council (NIFAC) on August 18. This council is now fully empowered to oversee the final stage of the consideration process for licensing applications by institutions seeking to engage in this impending new type of financial intermediation activity in Ghana.
The Bank of Ghana Governor, Dr. Johnson Pandit Asiama, had earlier confirmed that the central bank is aiming to grant the historic first license this year and indeed, prospective institutions are currently working intensely to satisfy the required operational and regulatory structures.
The Bank of Ghana has begun receiving formal applications amid active preparations for non-interest (otherwise known as Islamic or alternative) banking windows and licenses. While initial formal applications have included existing indigenous commercial banks applying to open non-interest windows, the central bank confirms that other prospective financial institutions and external investors (non-commercial bank entities) are actively preparing and engaging the Bank of Ghana to enter the space.
As of mid-2026, one indigenous bank had formally applied for a license, and four other financial institutions were actively preparing their final submissions. The central bank is processing these submissions as it prepares to issue Ghana’s very first operational non-interest banking Non-Interest Banking (NIB) license.
The guidelines to govern ethical, asset-backed, and profit-sharing financial models are contained in the central bank’s official Guidelines for the Regulation and Supervision of Non-Interest Banking issued in January 2026 which creates clear structures for conventional banks to open specialized “windows” and for new entities to apply for licenses.
This followed on from stakeholder engagements held in 2025 and early 2026 which were led by BoG advisors including Prof. John Gatsi, and through which the central bank held high-level consultations with religious leaders (Christian and Muslim) and industry players to build broad-based national understanding and trust.
The applications will increase in number over the coming weeks; at least five major conventional banks integrated non-interest banking setups directly into their corporate strategic plans
To establish a dedicated non-interest banking window, a conventional financial institution must comply with the strictures of the BoG’s Guidelines for the Regulation and Supervision of Non-Interest Banking which sets out several core application and operational prerequisites
For one thing there must be strict fund segregation, as any conventional bank licensed to diversify its activities to operate under the new framework must establish a dedicated Non-Interest Finance Fund (NIFF). This is designed to completely ring-fence non-interest assets, liabilities, income, and expenses to ensure they never commingle with conventional interest-bearing funds.
It must also apply independent internal accounting. While conventional operations and the non-interest window can share core banking software, the system must practically separate the recording, processing, and reporting of all transactions to guarantee full auditability.
Thirdly the bank must establish a dedicated governance framework. Applicants must set up parallel internal controls and risk management structures specifically for the window’s asset-backed and risk-sharing operations.
Finally, such a bank must provide voluntary participation assurance. The bank must ensure and prove that customers participate in non-interest banking products on a strictly voluntary basis. No conventional customer can be forced or automatically migrated into non-interest accounts.
For a full-fledged, standalone (non-interest banking only) universal bank in Ghana, the baseline minimum paid-up capital requirement aligns with conventional universal banks at GHc400 million. For foreign-owned applicants, at least 60% of this capital must be remitted in convertible foreign currency and invested strictly in approved non-interest, Shariah-compliant instruments
Existing conventional financial institutions wanting to offer non-interest products through a dedicated window do not need to raise separate baseline minimum capital. They must instead apply for regulatory approval, and the Bank of Ghana (BoG) will evaluate their existing capital adequacy and risk profile.
If operating under smaller institutional categories (such as Microfinance Banks), the general capital floor set by recent reforms is GHc100 million for new entrants and GHc50 million for transitioning entities. Thresholds vary depending on whether the entity is a community bank or a full development finance institution
According to the BoG’s framework, non-interest banking institutions will operate under three core principles.
Central to this is that it is a complementary model. BoG’s Governor Dr. Johnson Asiama has emphasized that it has been designed as a complement to conventional banking rather than “free finance”.
The second is that it is an asset-backed framework, with operations that rely strictly on trade, leasing, partnerships, and tangible asset-backed transactions instead of interest charges.
Lastly it is based on risk and profit sharing. Financial products will feature mutual sharing of risk and reward, aiming to widen credit access for small and medium enterprises (SMEs) and boost financial inclusion.
Speaking at the launch of NIFAC, Dr Asiama said that “Since the publication of the Guideline, we have seen growing interest from financial institutions and the public. Today’s inauguration is therefore the next practical step. It puts in place the national advisory structure needed to support the orderly development of the sector. The next stage will be shaped by the decisions made under this framework. As institutions develop new products, questions of interpretation, compliance and consistency will arise. Addressing them will require sound and independent judgment. That is why strong governance matters, and why NIFAC has been established. “
He further explained that the central bank’s framework requires non-interest banking institutions to establish their own advisory committees to guide their boards and management. These committees will operate at the institutional level, while NIFAC will advise the Bank of Ghana at the national level.
“NIFAC shall serve as the Bank of Ghana’s advisory council on the governance of non-interest banking and finance and is mandated to advise the Bank of Ghana on matters relating to the regulation and supervision of Non-Interest Banking Institutions in Ghana” he asserted. “The Council will also provide advisory support to the Securities and Exchange Commission and the National Insurance Commission as the non-interest finance ecosystem evolves until such a time that all the regulatory institutions have their own advisory councils. NIFAC’s role is advisory. The quality and consistency of its advice will influence the credibility of the sector. At the same time, its work will not displace the supervisory, enforcement or regulatory authority of the Bank of Ghana or the respective sector regulators.”
By: Toma Imirhe / businesspostonline
