Bank of Ghana develops comprehensive framework to guide Non-Interest Banking, Finance sector

The Bank of Ghana (BoG) is developing a comprehensive framework to guide the sector, as the central bank upscales measures for the introduction of Non-Interest Banking and Finance (NIBF) in country, Professor John Gartchie Gatsi, Advisor, BoG said at the weekend.

The NIBF operates in accordance with Islamic law (shariah) which prohibits excessive uncertainty and investments in industries like alcohol, gambling, and pork-related businesses.

Prof Gatsi said the BoG was undertaking extensive engagements with stakeholders, including academic institutions, including the Securities Exchange Commission and other professional bodies, and to shape the formulation of the framework.

Additionally, the central bank had also held engagements with Nigeria banks and capital market players, saying “our target is to learn from a Western, Regional and Asian countries.

Prof Gatsi was speaking at the opening session of a capacity building workshop for selected media practitioners on the NIBF and finance at Koforidua, the Eastern Regional capital.

The BoG organized the day’s workshop to enlighten and empower about 30 senior journalists who will subsequently intensify public education on the benefits of the NIB and help dispel emerging myths and misconceptions too.

Prof Gatsi emphasized that BoG valued the deepening and diversification of the banking and financial sectors and stressed the readiness and commitment of the BoG to collaborate with Securities and Exchange Commission (SEC), the real sectors and the insurance sector to promote a healthy financial and banking ecosystem to improve the economy.

Prof Gatsi said: “The NIBF will soon create an expanded banking, capital market, and insurance opportunities including diversified sources of financing infrastructure and business development in Ghana”.

He stressed that the NIBF remained a commercial bank and contributed strategically to the economy, deepened financial inclusion, promoted the United Nations Sustainable Development Goals (SDGs) and ethical obligation towards protection of the environment.

In a highlight, he said introduction of the NIBF would greatly finance big Infrastructure projects, improve socio-economic activities, increase economic growth and development, and thereby deepen financial inclusion and economies of scope.

That will further promote risk sharing in financial transactions, support trade and export, and contribute successfully to the implementation of the government’s flagship 24-hour economy for sustainable growth and economic development.

Globally, Mr Ismail Adam, the Head of Banking Supervision Department of the BoG, said the NIBF assets exceeded $5 trillion, and urged the journalists and media practitioners to help intensify public education for the people to understand the concept for the nation to derive the optimum benefit.

Earlier, Mr Dominic Hlordzi, the General Secretary of the Ghana Journalists Association (GJA) lauded the long existing collaboration between the association and the central bank in promoting all-inclusive banking service.

He called on the BoG to consider expanding the training to benefit more journalists and media practitioners in the country.

Source: GNA

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