Ghana’s largest indigenous bank, GCB Bank PLC, has thrown its weight behind the development of Non-Interest Finance in the country, asserting that a properly regulated non-interest financial system could significantly broaden access to credit and create alternative financing opportunities for individuals and businesses, particularly Small and Medium-sized Enterprises (SMEs).
The bank’s endorsement follows the official inauguration of the Non-Interest Financial Advisory Council (NIFAC) by the Bank of Ghana (BoG), a move GCB Bank has hailed as an important milestone towards building a more inclusive, innovative and diversified financial sector .
The NIFAC Framework
The NIFAC, chaired by Prof. Bashir Aliyu Umar, a former Special Adviser on Non-Interest Banking to the Governor of the Central Bank of Nigeria, comprises five members with expertise spanning non-interest finance, economics, treasury and liquidity management, and financial regulation . The council is expected to provide strategic guidance to the Bank of Ghana on the regulation, governance, compliance, and supervision of non-interest banking institutions .
The establishment of NIFAC follows the Bank of Ghana’s publication of the “Guidelines for the Regulation and Supervision of Non-Interest Banking in Ghana” in January 2026 . These guidelines allow existing financial institutions to offer non-interest services through dedicated windows while also providing for the licensing and supervision of fully fledged non-interest banking institutions .
The legal foundation for non-interest banking in Ghana has existed since the passage of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) under Section 18(1R) . However, as BoG Governor Dr. Johnson Pandit Asiama noted during the inauguration, “Legal provision alone, just providing for it in the Act, does not create a functioning market” . This necessitated the development of the comprehensive regulatory framework.
GCB Bank’s Perspective
Commenting on the development, Managing Director of GCB Bank, Farihan Alhassan, said the framework created by NIFAC provides the certainty needed for the sector to grow while encouraging financial institutions to develop new products and services .
“The inauguration of NIFAC is a significant step forward for Ghana’s financial sector. It creates an important institutional foundation for innovation to take place within a clear, credible and well-governed framework,” Mr. Alhassan stated .
The Managing Director emphasized that the future of banking must respond to the changing and diverse needs of customers, stressing that non-interest finance has the potential to broaden financial choice and deepen financial inclusion .
“A properly developed Non-Interest Finance market can complement Ghana’s existing financial architecture and provide alternative financing approaches for SMEs, households, infrastructure, agriculture, trade and other productive sectors of the economy,” he added .
Beyond Religious Boundaries
GCB Bank is keen to emphasize that the potential benefits of non-interest finance extend beyond any particular religious or customer group . Non-interest banking is based on profit-sharing and asset-backed transactions rather than interest-based lending . Models in the UK, Malaysia and the US demonstrate that such systems can function effectively in secular economies .
SME Credit Constraints
The development comes at a critical time for Ghana’s SME sector, which often struggles with high borrowing costs in conventional markets . Research suggests the non-interest banking model could ease credit constraints and diversify the financial sector while attracting foreign investment and supporting infrastructure development .
Dr. Daniel Anim-Prempeh, Chief Economist at the Public Initiative for Economic Development (PIED), noted that the model could draw in businesses that have historically avoided formal banking due to interest-based lending structures .
Growing Institutional Interest
The regulatory framework has already sparked interest from the financial sector. At least one indigenous lender has formally applied for a licence, with four additional banks preparing to submit applications to the Bank of Ghana .
Governor Asiama confirmed at the 128th Monetary Policy Committee press briefing that several investors had made preliminary enquiries ahead of formal submissions . The Bank of Ghana has indicated it is ready to review and grant licences to institutions that meet the requirements .
Regulatory Safeguards
As the sector develops, Governor Asiama has cautioned against accepting financial products 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 stated .
The establishment of NIFAC is also expected to strengthen standards around transparency, consumer protection, compliance and financial stability as Ghana develops its non-interest banking ecosystem . The clearer regulatory and governance structure should provide greater confidence for financial institutions, investors, businesses and customers seeking to participate in the emerging market .
About GCB Bank
GCB Bank PLC is Ghana’s largest and number one bank, established in 1953 as the Bank of the Gold Coast to provide banking services to indigenous businesses . The bank has played a foundational role in financing Ghana’s economic development for over seven decades, supporting commerce, industry, public infrastructure and financial inclusion .
With over 183 branches and more than 340 ATMs nationwide, GCB serves millions of customers across all regions and functions as a full-spectrum universal bank delivering integrated financial services . The bank is committed to extending banking services to unbanked and underserved communities and actively finances key sectors including agriculture, energy, manufacturing, infrastructure, telecoms and trade .
GCB Bank reiterated its support for measures aimed at strengthening Ghana’s financial services industry, expanding access to finance and creating new opportunities for sustainable economic development .
