IMPLEMENTING ISLAMIC BANKING UNDER CONVENTIONAL BANKING ACTS — SPECIAL REFERENCE TO GHANA

Abstract

The main purpose of this study is to study the legal status of Islamic banking (IB) in Ghana in relation to the new banking Act, Banks Specialized Deposits Taking Institution (BSDTI) Act, 2016 (Act 930). The research employs a qualitative approach that uses interviews to measure the opinions of a sample of 10 experts with Islamic finance/finance backgrounds conveniently and purposively selected from higher learning/research institutions in Ghana and abroad. Questionnaires are also administered to 52 core banking employees. The data analysis is done with the aid of SPSS (V. 20). The findings from the research reveal that IB is not explicitly permitted by the Act. However, IB implementation in Ghana is possible. The majority of respondents are Muslims and this should be considered before generalization over the entire country. Islamic banking can be implemented in Ghana if deliberate efforts are made to revise the Banking Act. Notably, this study is the first of its kind to interview both local and foreign experts regarding the legal status of IB in relation to the new banking Act.