Non-interest finance is for everyone: IFRIG supports BoG’s inclusive financial agenda

For centuries, banks have primarily lent money and earned profit through interest. However, the global financial landscape has shown that alternative models exist. Non-interest banking is one such alternative, and it's crucial to support the Bank of Ghana's stance on this matter. IFRIG, a research institute focusing on non-interest banking and finance, wholeheartedly endorses this view.

This inclusive financial system can serve anyone, irrespective of their religion, ethnicity, or beliefs. Non-interest banking should be viewed as a supplementary option to the traditional banking system, not a substitute. Every individual and business in Ghana should have access to various financial products tailored to their unique needs and preferences.

Unlike conventional banks, non-interest banks generate income through commercial contracts and real economy activities. These revenue-generating methods include asset-based financing, leasing, trade and investment activities, and equity-based partnerships. Customers can access these products and services without being a Muslim, such as a Christian entrepreneur, farmer, trader, professional, or investor.

The UK and Nigeria have demonstrated that non-interest banking can thrive in diverse societies, proving that it is not exclusive to any particular group. The introduction of Sukuk, or non-interest bonds, can provide Ghana with additional financing options for vital infrastructure projects, attracting both domestic and international investors.

Expanding non-interest banking in Ghana will create opportunities for various professionals and contribute to the financial sector's diversification and growth. Ghana should view non-interest banking as a complementary option to the existing banking system, promoting a more inclusive, innovative, and sustainable financial landscape for all Ghanaians.