Towards better operations…
GUYANA Association of Bankers (GAB) yesterday made public the Code of Banking Practice and Finance Minister, Dr. Ashni Singh said the move is an indication of the collaboration that exists in the sector.
“This is an example of a sector working in unison to promote better practices. The voluntary initiative taken by the Guyana Association of Bankers has a number of potential benefits to be developed,” he said.
Singh’s remarks were made when he addressed stakeholders of the sector in the New Market Street, Georgetown, head office of the Republic Bank Limited.
He said the code is physical evidence of the banking institution’s commitment to best practices.
The code is subject to legislative requirements and general banking laws but the principles outlined in it are aimed at fostering good relations between commercial banks in Guyana and their customers, in order to promote good banking practices by formalising standards of disclosure and conduct which compliant entities adopt.
It is the minimum standard by which all commercial banks agree to be bound and Minister Singh pointed out that subscription to the principles lends itself to:

* greater openness and transparency of operation, which enhance the relationship between customers and banks;

* enhanced competition between banks, which contributes to better informed customers who will, in turn, make better decisions and

* greater efficiency in the banking sector.

“This (Code of Practice) represents a clear sign of maturity of the banking sector in Guyana, the physical evidence of the transformation in the sector for all to see but it is initiatives like this that add to the manner in which the sector has transformed itself and is preparing itself for the modern world,” he said.
Singh lauded the innovation and said the adoption of self-regulation, through the code, adds to the strength, stability and maturity of a sector which, in turn, influences growth and development of a country.

Platform
GAB Chairman, Mr. John Tracey concurred and added that the code will provide a platform from which financial institutions can operate in a more efficient manner.
He said the code will serve to reinforce the level of public trust and confidence in the sector which is necessary for the smooth running of entities within.
The Guyana Bank for Trade and Industry (GBTI) Managing Director observed that it was necessary because of the deterioration of relations between financial instuitions and their customers after the global financial crisis that rocked the foundations of many and caused collapse of several others.
“The new rules will curb the ability of banks to operate outside the established guidelines,” Tracey argued and said the Guyana Banking Sector remains rooted in relatively sound practices, with a set of rules that are well enforced and by the regulators allowing our customers to feel confident that the system is well and secure.
However, he conceded that the code is not a complete record of banks’ relationship with customers.
But he maintained that it sets an acceptable enough benchmark.
Tracey explained that, while the code covers a wide range of transactions, its  diversity resulted in it not being applicable to all areas.
“It is a generalised code,” he asserted.
Tracey acknowledged that the code will not, completely, eliminate all complaints but reminded that there are mechanisms outside of it, in each member bank, which would cater for areas not covered by it.
He emphasised that applying the code to all aspects of interaction between the financial institutions and customers is difficult, due to the diverse nature of operations.
Tracey said, though: “We could develop this code further and elaborate on it. All codes are not all embracing to cater for every situation but there are other mechanisms that make up for it. I would say so with confidence.”

Guidelines
He admitted that the code is not new but said it is the first time that institutions have come together to outline, in one document, guidelines that will ensure a more harmonious and fruitful relationship is forged between financial institutions and customers.
Tracey stated that, in a changing environment, greater information sharing between financial institutions and customers results in mutual benefits for the parties involved.
“The Code of Practice enhances the banking environment in Guyana. It is the start of something new,” he posited.
In recognition of this, Tracey said mechanisms will be put in place to enlighten the general public to the particulars of the code.
“We will expose them in parts via the daily newspapers, along with other pertinent information. The launch of this code is an opportunity to show our commitment to the values enshrined in it,” he reiterated.
Relative to compliance with the Code of Practice, Tracey said “good business sense” is the motivating factor since compliance goes back to the bottom line of financial institution’s operations.
GAB Vice-Chairman, Mrs. Amanda St. Aubyn described the code as a “living document” that sets standards and helps customers to be aware of what to expect in their interactions with the banking sector.
She said that customer feedback will facilitate improvements to it.
GAB membership comprises Republic Bank, GBTI, Demerara Bank Limited, Bank of Nova Scotia, Citizens Bank and Bank of Baroda.