BoG, SEC and NIC Unveil Joint Regulatory Push

Ghana is edging closer to the formal rollout of a fully functional non-interest banking and finance (NIBF) ecosystem, following a coordinated regulatory effort by the Bank of Ghana (BoG), the Securities and Exchange Commission (SEC) and the National Insurance Commission (NIC).

With the three institutions forming a joint regulatory committee, stakeholders say the country is making unprecedented progress toward establishing an alternative financial system grounded in risk-sharing, ethical financing and inclusiveness.

This renewed momentum was highlighted during a recent capacity-building workshop where the BoG reaffirmed its commitment to providing a harmonized regulatory framework for the emerging industry.

The initiative is part of Ghana’s broader push to diversify its financial sector and expand the range of ethical and asset-backed financial products available to households and businesses.

BoG

Speaking on behalf of the Governor, Dr Johnson Asiama, the Head of the Banking Supervision Department, Ismail Adam, said the central bank has now reached a crucial stage in its regulatory preparations.

He noted that the BoG had undertaken extensive stakeholder engagement across both Christian and Muslim communities to ensure the adoption of a secular terminology that reflects national inclusiveness.

“We are happy that we are participating in this capacity-building exercise to pave the way for you to take advantage of the window for non-interest banking and financing,” he said.

He described the current phase as the first significant regulatory investment aimed at commercializing non-interest banking in Ghana.

Mr Adam also emphasized that the success of the NIBF model hinges on the development of specialized skills within the financial sector.

He explained that because non-interest banking is largely “asset-backed, risk-sharing and profit-sharing,” practitioners need expertise in areas such as product development, contract structuring, accounting, auditing and risk management.

He urged financial institutions to strengthen their governance systems, upgrade operational structures and invest heavily in staff training to align with the BoG’s draft guidelines.

He further encouraged banks not to wait for the final directive before taking action, but to begin crafting phased implementation strategies, business cases and target-market analyses. “Only when we understand will we be able to roll out the products effectively for the benefit of the clients we serve,” he said.

SEC Positions Ghana for Sukuk Issuance

While the BoG drives the banking side of the agenda, the Securities and Exchange Commission is moving steadily toward finalising guidelines for the issuance and regulation of Sukuk — non-interest Islamic bonds.

The Director-General of the SEC, Dr James Klutse Avedzi, said the Commission has been involved in the learning process “from day one” and is ready to give Ghana a new capital-raising channel through Sukuk.

He noted that such instruments have become powerful financing tools in countries like Nigeria, Kenya, Tanzania and Togo.

According to Dr Avedzi, Ghana stands to benefit significantly from this addition to its financial market architecture. He said the introduction of Sukuk would allow both government and corporates to raise capital for major infrastructure projects, particularly in sectors with substantial financing deficits such as transport and road development.

“Ghana is ready for the introduction of non-interest banking,” he affirmed, adding that the regulatory framework for Sukuk is being shaped around investor protection, market efficiency and the unique risk-sharing requirements of the instrument.

The workshop also drew praise from academia, with Professor John Gatsi describing the harmonised effort between the BoG, SEC and NIC as a hallmark of effective regulatory coordination. Delivering the welcome address, he lauded the institutions for forming a joint regulatory committee to champion NIBF governance in Ghana.

“The global financial landscape is evolving, and the demand for non-interest banking and finance is undeniable,” he said. Professor Gatsi highlighted the extensive support Ghana has received from international regulators and financial institutions, including the Central Bank of Nigeria, Central Bank of Malaysia, Bank of England and major non-interest banks based in Nigeria.

He explained that the training programme was designed to expose practitioners to core areas essential for the rollout of non-interest finance in Ghana.

These include product development, licensing and capital requirements, liquidity management tools, governance frameworks and compliance structures. The training also focused on how non-interest insurance products and liquidity mechanisms can be successfully adapted to Ghana’s financial ecosystem.

The ongoing push for non-interest banking forms part of Ghana’s broader financial sector diversification agenda. Regulators believe the model, built on ethical principles and shared risk, will expand the nation’s pool of financial products, boost investor confidence and enhance financial inclusion.