Islamic scholars urge BoG to license Islamic banking

Some Islamic scholars are urging the Bank of Ghana(BoG) to license Islamic banking in Ghana to improve the financial system.

The central bank in 2016, withdrew the license it gave to Saudi Arabia-based financial company, Makkah, after the company failed to meet key requirements for the granting of a full operation license on two occasions.

The BoG however maintains that it is working to encourage the establishment of an Islamic Bank in Ghana.

An Executive Member of the Ghana Muslim Ambassadors, Dr. Abubakar Muhammad Marzuq in an interview with Citi Business News said the Islamic banking will be of great benefit to the country as a whole.

“Islamic Banking gives opportunities in loans, neither does it entertain interest. Any one sided burden in financial transaction is avoided in Islamic banking. Again, the issue of profit and loss, the giver of the loan, and the receiver share the profit or loss when the need arises. These two values are enough to justify the relevance of Islamic banking and finance” he defended.

He added that “Islamic banking is a sector which offers huge growth potential for Africa and Ghana in particular”.

While advising Ghana to embrace it to reap the benefits being derived by other African countries who are already practicing Islamic Banking.

“Other western African countries such as Senegal and Nigeria have already made headway on this front by putting legal and regulatory frameworks into place to support the growth of Islamic banking in the region”.

Dr. Abubakar Muhammad Marzuq spoke to Citi Business News on the sidelines of an Islamic banking and finance round table discussion.

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