BoG inaugurates Financial Advisory Council to drive non-interest banking in Ghana

The Bank of Ghana (BoG) has officially launched the Non-Interest Financial Advisory Council (NIFAC) to promote the creation and evolution of non-interest banking products within Ghana. This Council will serve as an advisory body to the Bank of Ghana, offering expert insights on the regulation and oversight of non-interest banking institutions, with the aim of fostering a robust and resilient non-interest finance sector.

Prof. Bashir Aliyu Umar leads the Council, which currently comprises four distinguished members: Dr Yussuf Adany Al-Badani, Dr George Baah-Danquah, Adishetu Hamidu Naabo, and Samuel Gameli Gadzo.

Bank of Ghana Governor Dr Johnson Asiama highlighted the inauguration as a crucial milestone in enhancing the governance and supervision framework for non-interest banking in Ghana. The Council's role is to ensure that any new non-interest banking products introduced into the market are appropriately designed, transparent, and capable of addressing the diverse needs of consumers.

Asiama emphasized the growing interest in non-interest finance from both financial institutions and the public, which prompted the establishment of the Council to oversee the sector's orderly growth.

He cautioned against accepting non-interest finance products solely based on their non-interest label, stressing the importance of transparency regarding the products' structure, risks, costs, and obligations. Dr Asiama further explained that non-interest finance has the potential to bolster financial inclusion by offering Ghanaians alternative financial products that cater to various needs and values while maintaining financial stability.

In addition to advising the Bank of Ghana, the NIFAC will provide guidance to the Securities and Exchange Commission (SEC) and the National Insurance Commission (NIC) as Ghana continues to develop its non-interest finance ecosystem.