Tag: Banking Sector

Islamic Finance to Complement, Not Disrupt Ghana’s Banking Sector – Prof Gatsi Islamic banking is set to broaden Ghana’s financial landscape by complementing, rather than competing with, the country’s conventional banking system, Policy Advisor on Islamic Banking at the Bank of Ghana, Professor John Gatsi, has emphasised. Speaking amid heightened public debate on the formal rollout of Islamic banking, Prof Gatsi explained that non-interest finance offers unique structures designed to deepen financial inclusion, drive infrastructure development, and support economic diversification, especially in trade and commerce. “Non-interest banking and finance is poised to enhance our market economic structure. It will not outperform conventional structures because it is not a competitor. Rather, it plays crucial complementary roles in municipal, central government, and private sectors’ infrastructure and enterprise funding.” Prof Gatsi clarified. His comments come as the Bank of Ghana works to finalise regulatory frameworks for licensing Islamic financial institutions, paving the way for a model that prohibits interest-based transactions in line with Sharia principles. Prof Gatsi cited international experiences to dismiss fears that Islamic banking could destabilise Ghana’s financial system. He highlighted countries such as the UK, Saudi Arabia, Dubai, Turkey, Japan, Canada, France, the Netherlands, Nigeria, Uganda, Hong Kong, Singapore, Luxembourg, the US, and Malaysia, where Islamic and conventional banks co-exist seamlessly. “These institutions have not even competed with conventional banks, let alone dismantled them. The apprehension that Islamic finance and banking will negatively affect conventional banks in the country is not rooted in progressive information widely available to regulators globally.” he said. According to him, introducing Islamic banking will enable Ghana to achieve economies of scope, expand access to finance for underserved populations, and diversify funding sources for trade and commerce. “Non-interest banking will achieve financial inclusion, diversification in financing trade and commerce, as well as project finance for government and the private sectors of the economy,” he noted. Prof Gatsi also underscored the socio-economic benefits of Islamic finance in supporting the achievement of the UN Sustainable Development Goals (SDGs), particularly through empowerment of women entrepreneurs and ethical financing models that avoid speculative risk. “Furthermore, non-interest banking and finance will provide unique support to women entrepreneurs and contribute to achieving the SDGs,” he added. Analysts say Islamic banking has the potential to attract new capital flows into Ghana’s economy, especially from Middle Eastern and Asian investors seeking Sharia-compliant opportunities, while boosting confidence in the inclusivity of the financial sector. As regulatory preparations continue, stakeholders await further directives from the Bank of Ghana to operationalise what experts describe as a transformative pillar for inclusive economic growth.
Business & EconomyNews

Islamic Finance to Complement, Not Disrupt or Compete Ghana’s Banking Sector – Prof Gatsi

Prof John Gatsi says Islamic banking will complement, not compete with, Ghana’s…

4 Min Read
Tough But Necessary: Banks Laud BoG's New Directives as Bold Move to Improve Banking Ecosystem
Business & Economy

Tough But Necessary: Banks Laud BoG’s New Directives as Bold Move to Improve Banking Ecosystem

The Ghana Association of Banks welcomes the Bank of Ghana’s stringent new…

4 Min Read
BoG Governor’s Tough Love for Ghana’s Banks: Discipline, Fairness, and Digital Readiness Take Center Stage
Business & Economy

BoG Governor’s Tough Love for Ghana’s Banks: Discipline, Fairness, and Digital Readiness Take Center Stage

Governor Asiama urges Ghana’s banks to embrace discipline, fairness, and digital readiness,…

6 Min Read
MTN
News

MTN MoMo’s Growing Power a Risk to Ghana’s Financial System, Says Prof. Adei

Ghana’s financial system faces a growing systemic risk from MTN Ghana and…

4 Min Read
Tough But Necessary: Banks Laud BoG's New Directives as Bold Move to Improve Banking Ecosystem
Business & Economy

Gov’t Must Commit to Structured Repayment Plan to Save Ghana’s Troubled Banking Sector – Dr. Atuahene

Dr. Richmond Atuahene urges government to adopt a structured repayment plan for…

4 Min Read
Ghana’s Banking Sector Tops Sub-Saharan Africa in Loan Default Exposure-Fitch Warns of Fragile Outlook
Business & EconomyNews

Ghana’s Banking Sector Tops Sub-Saharan Africa in Loan Default Exposure-Fitch Warns of Fragile Outlook

Fitch Solutions ranks Ghana’s banking sector as the most exposed to non-performing…

3 Min Read
Republic Bank Defies Economic Challenges to Post GH¢63.5m Profit in 1st Quarter of 2025
Business & Economy

Republic Bank Defies Economic Challenges to Post GH¢63.5Mn Profit in 1st Quarter of 2025

Republic Bank Ghana PLC posted a strong GH¢63.5 million profit in Q1…

3 Min Read
BoG Unveils Strategic Resolvability Framework to Strengthen Sectoral Resilience and Regulatory Oversight
Business & EconomyNews

BoG Unveils Strategic Resolvability Framework to Strengthen Sectoral Resilience and Regulatory Oversight

Bank of Ghana’s new Resolvability Framework boosts risk detection, digital security, and…

4 Min Read
Banks Must Balance Profit Targets with Ethical Work Culture – Asomaning
Business & Economy

Banks Must Balance Profit Targets with Ethical Work Culture – Asomaning

Financial crimes in banks stem from ethical lapses, not low salaries. Asomaning…

3 Min Read
Ghana Strengthens Financial Buffers to Meet Debt Obligations, Assures Banking Sector
Business & Economy

Ghana Strengthens Financial Buffers to Meet Debt Obligations, Finance Minister Assures Banking Sector

Ghana’s Finance Minister Dr. Cassiel Ato Forson assures banks that financial buffers…

2 Min Read
Ghana’s Banking Sector Grapples with High NPL Ratios – BoG Governor Calls for Urgent Action
Business & EconomyMarkets

Ghana’s Banking Sector Grapples with High NPLs – BoG Governor Calls for Urgent Action

Ghana’s banking sector faces rising NPLs, with some banks reporting up to…

3 Min Read
NPP Says Banking Sector Cleanup Well Intended As It Counters National Economic Dialogue with ‘True State of the Economy’ Report
Business & Economy

NPP Says Economy Rebounding as it Presents ‘True State of the Nation Address’

As Ghana’s National Economic Dialogue unfolds, the NPP counters with its 'True…

4 Min Read