The Bank of Ghana (BoG) has inaugurated the Non-Interest Financial Advisory Council (NIFAC) to support the establishment and development of non-interest banking products in Ghana.

The Council is expected to provide expert advice to the Bank of Ghana on the regulation and supervision of non-interest banking institutions and help guide the development of a sound and sustainable non-interest finance ecosystem.

The Council is chaired by Prof. Bashir Aliyu Umar with Dr Yussuf Adany Al-Badani, Dr George Baah-Danquah, Adishetu Hamidu Naabo and Samuel Gameli Gadzo serving as members.

The Governor of the Bank of Ghana, Dr Johnson Asiama, said the inauguration marks an important step towards strengthening the governance and supervisory framework for non-interest banking in the country.

He said the Council would help ensure that non-interest banking products introduced into the Ghanaian market are properly structured, transparent and capable of meeting the needs of consumers.

Dr Asiama noted that growing interest in non-interest finance from financial institutions and the public made the establishment of the Council necessary to ensure the orderly development of the sector.

He said non-interest finance has the potential to deepen financial inclusion by providing Ghanaians with alternative financial products that align with different needs and values, while maintaining financial stability.

The BoG Governor, however, cautioned that products should not be accepted simply because they carry a non-interest label.

“Products should not be accepted merely because they carry a non-interest label. Their structure, their risks, their costs, their obligations, these have to be transparent and capable of being understood by customers,” he said.

The Council will also provide advisory support to the Securities and Exchange Commission (SEC) and the National Insurance Commission (NIC) as Ghana develops the wider non-interest finance ecosystem.