The Bank of Ghana has revealed that Ghana could see the arrival of the first Islamic Bank in operation.
Ghana to receive first Islamic Bank this year
The Saudi Arabian institution secured a provisional licence from Bank of Ghana to start operations last year.
However, it had to ask for an extension till November because of challenges in meeting all key banking requirements.
Islamic finance may be viewed as a form of ethical investing, or ethical lending where no loans are possible unless they are interest-free.
Among the ethical restrictions is the prohibition on alcohol and gambling and the consumption of pork, that is Islamic funds would never knowingly invest in companies involved in gambling, alcoholic beverages, or porcine food products.
Its practitioners and clients need not be Muslim, but they must accept the ethical restrictions underscored by Islamic values.
Head of Banking Supervision of Bank of Ghana, Franklyn Belyne says the regulator is waiting for some final requirements to be met by the yet-to-be-named bank before it can start operations.
Islamic Banking is currently being operated in some European countries.
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