Professor John Gatsi, the Dean of the School of Business, University of Cape Coast has noted that Islamic Banking operations could complement banking operations in Ghana.
Prof. Gatsi was speaking during the Islamic Banking and Finance forum organized by the Dubai Chamber International Office in Accra last week, where he said the interest-free principle of Islamic banking is not an unrealistic principle in banking.
According to him, the reason why Islamic banking discussions which started in 2004 could not catch the attention of governmental and regulatory players is because of the approach and largely indoor nature of the discussion.
Professor Gatsi wants the discussion on Islamic banking to be reactivated and discussed openly to highlight the prospects for the Ghanaian economy rather than purely on the requirements of one’s religion.
Prof Gatsi said broader engagement with religious stakeholders, government and regulators of the financial market to focus on interest-free banking is required to provide competition and an alternative choice for Ghanaians.
To some scholars, the difference between the performance of Islamic banks and conventional banks are not pronounced. The products are almost the same with different approaches. There are Islamic insurance (takaful), Islamic bonds (Sukuk), joint ventures, partnerships.
“The strength of a vibrant financial system is to be able to accommodate new financial products, services, instruments, and approaches to banking,” Prof. Gatsi said as Islamic banking has already penetrated North America, Europe, Africa and Asia.