Non-Interest Banking in Ghana: BoG Requires 60% Foreign Currency Capital for Foreign Banks
The Bank of Ghana (BoG) has unveiled a new regulatory framework aimed at tightening oversight of the country’s growing non-interest banking sector. The central bank’s draft guidelines propose that foreign-owned non-interest banks inject at least 60 percent of their minimum paid-up capital in convertible foreign currency. This move is part of the BoG’s strategy to ensure financial stability and protect the industry from currency and liquidity risks.
For the first time, foreign operators in Ghana’s non-interest banking sector must commit a significant portion of their capital to Shariah-compliant financial instruments. The new rules require that this foreign currency capital be deployed exclusively into approved non-interest financial products, reinforcing the principles of Islamic finance while strengthening the resilience of participating institutions.
According to the BoG, the revised framework will also establish minimum capital thresholds and application fees for all categories of non-interest financial institutions, including development finance institutions, microfinance companies, and rural banks. Final licenses will only be issued after the institutions settle the required fees, with all operators obligated to pay annual supervisory fees by January 31 each year.
The central bank retains the discretion to impose additional capital buffers on banks where necessary, further safeguarding the sector against potential financial shocks. Anchored in Act 930 and Act 1032, the guidelines also set clear governance standards, permissible financing contracts, and operational rules for both the Non-Interest Financial Advisory Council and the Non-Interest Banking Advisory Committee.
Industry experts say the BoG’s move could attract more foreign participation in Ghana’s non-interest banking sector while maintaining regulatory prudence. By emphasizing Shariah-compliant investment and robust capital requirements, the central bank aims to create a stable, transparent, and resilient financial ecosystem that can support long-term growth in the sector.
source: citi newsroom