The Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, has cautioned against the introduction of non-interest banking products that do not meet the required standards of transparency, soundness and consumer protection.

Speaking at the inauguration of the Non-Interest Financial Advisory Council (NIFAC), Dr Asiama said products should not be accepted simply because they carry a non-interest label, stressing the need for proper assessment of their structure, risks, costs and obligations.

“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,” Dr Asiama said.

He explained that non-interest finance is not “free finance” but operates through mechanisms such as trade, leasing, partnerships and asset-backed transactions.

According to Dr Asiama, the development of non-interest finance could broaden financial inclusion by providing Ghanaians with financial products that align with different needs and values, while maintaining financial stability.

The inauguration of NIFAC forms part of efforts by the Bank of Ghana to establish a stronger governance and supervisory framework for the sector.

The members of the council are Prof. Bashir Aliyu Umar, Chairman and a Nigerian.

The rest are Dr. Yussuf Adany Al-Badani, Dr. George Baah-Danquah, Adishetu Hamidu Naabo, Samuel Gameli Gadzo, all Ghanaians.

The Council will advise the Bank of Ghana on matters relating to the regulation and supervision of non-interest banking institutions in Ghana. It will also provide advisory support to the Securities and Exchange Commission and the National Insurance Commission as the wider non-interest finance ecosystem develops.

Dr Asiama noted that Ghana already had the legal basis for non-interest banking under Section 18(1R) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).

However, he stressed that legislation alone was not sufficient to create a functioning market.

The Bank of Ghana subsequently established a dedicated team to develop the necessary regulatory and supervisory framework, leading to the publication in January 2026 of guidelines for the regulation and supervision of non-interest banking in Ghana.

The guidelines allow existing financial institutions to provide non-interest services through dedicated windows, while also providing for the licensing and supervision of fully-fledged non-interest banking institutions.

Dr Asiama said growing interest from financial institutions and the public made the establishment of NIFAC a necessary next step in ensuring the orderly development of the sector.

He urged members of the Council to discharge their mandate with independence, objectivity, professionalism and diligence.

“The success of this initiative will not be measured by the number of new products that are introduced, but by whether those products are sound, useful, and worthy of public confidence,” he said.