Koforidua: 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 the 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.
According to Ghana News Agency, Prof Gatsi stated that the BoG was undertaking extensive engagements with stakeholders, including academic institutions, the Securities Exchange Commission, and other professional bodies, to shape the formulation of the framework. Additionally, the central bank has also held engagements with Nigerian banks and capital market players to learn from 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 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.
Prof Gatsi emphasized that BoG valued the deepening and diversification of the banking and financial sectors. He stressed the readiness and commitment of the BoG to collaborate with the Securities and Exchange Commission, real sectors, and the insurance sector to promote a healthy financial and banking ecosystem to improve the economy. He highlighted that the NIBF would soon create 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, and promoted the United Nations Sustainable Development Goals (SDGs) and ethical obligation towards the protection of the environment. He noted that the introduction of the NIBF would greatly finance large infrastructure projects, improve socio-economic activities, increase economic growth and development, and thereby deepen financial inclusion and economies of scope.
Additionally, the NIBF is expected to 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 the Banking Supervision Department of the BoG, stated that the NIBF assets exceeded $5 trillion and urged journalists and media practitioners to help intensify public education for people to understand the concept for the nation to derive optimum benefits.
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.
