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) with the aim of promoting the creation and growth of non-interest banking products in Ghana. The Council's primary role is to offer expert guidance to the Bank of Ghana regarding the regulation and oversight of non-interest banking institutions, as well as to help shape a robust and enduring non-interest finance system.

NIFAC is presided over by Professor Bashir Aliyu Umar, while Dr Yussuf Adany Al-Badani, Dr George Baah-Danquah, Adishetu Hamidu Naabo, and Samuel Gameli Gadzo are among its esteemed members.

Bank of Ghana Governor, Dr Johnson Asiama, highlighted the inauguration as a significant milestone in enhancing the governance and supervisory structure for non-interest banking in Ghana. He emphasized that NIFAC would ensure that non-interest banking products launched in the local market are well-structured, transparent, and capable of addressing consumer needs.

Asiama noted that the surge in interest surrounding non-interest finance from both financial institutions and the public necessitated the formation of the Council to facilitate the sector's orderly expansion.

While acknowledging the potential of non-interest finance to bolster financial inclusion by offering Ghanaians alternative financial products tailored to diverse needs and values, Asiama cautioned against hasty acceptance of such products. He stressed that products should not merely be endorsed due to their non-interest designation.

Instead, their structure, risks, costs, and obligations must be transparent and comprehensible to customers. Additionally, the Council will extend advisory support to the Securities and Exchange Commission (SEC) and the National Insurance Commission (NIC) as Ghana forges ahead in developing the broader non-interest finance ecosystem.