With Finance Minister urging…
INTERCONNECTIVITY among institutions in Guyana’s banking sector can be expected by early next year as Chairman of Guyana Association of Bankers (GAB), Mr. John Tracey, said a decision on that will be made before year end.
“We are, right now, looking at the feasibility of acquiring a switch. It is very costly and there are a lot of options,” he said, in an invited comment.
Tracey said the choices include the creation of an organisation to oversee the interconnectivity or the linkage of local entities to an existing framework in another country.
He said a switch would have to be highly subsidised by the banks which have to make it as cost effective as they can.
Tracey spoke after Finance Minister, Dr. Ashni Singh addressed the issue at the introduction of a Code of Practice, on Tuesday, at Republic Bank Limited Head Office, in New Market Street, Georgetown.
Singh said there are opportunities the banking sector can exploit to enhance efficiency and reduce expenditure.
“The switch is an issue that has been debated for a number of years. Chances are that, if we don’t address this issue, each bank is going to be investing millions of dollars that could, otherwise, be productively invested and utilised,” Tracey said.
Singh had stated that the duplication of many services imposes additional costs on the financial institutions and, by direct extension, the country and the economy.
“We do not have to have this duplication,” he intoned.
Singh reiterated his call for GAB to address it urgently as well as employment of Information Technology (IT).
He said, not only does IT promote the obvious improvement in efficiency but also good business.
Singh noted that a majority of persons working with the State are paid through banks, an initiative that should be extended to pensioners and, in that way, relationships can be forged with individuals who did not previously interact with the banking sector.
He said that contributes to good business and urged GAB to enhance access.
“In keeping with our thrust to access of financial services and growth of our economy, this is an area that should be reflected on,” the Minister said.

Important
According to him, a strong and stable banking sector has always been a point of focus of the current administration over the years and a strong financial framework is important for promoting growth in the economy.
Singh alluded to the enhancement of a competitive environment and said it is a key area when considering the realisation of an economy’s potential.
“The task of promoting competitiveness and growth in our economy is not one that resides solely with government and regulators,” he asserted.
Singh said Government has taken steps to ensure appropriate legislation and regulations are in place for the establishment of an environment conducive to greater competitiveness.
He said it is important for the Private Sector to be responsive to a competitive environment and lauded the efforts that have been made, so far.
“Much potential resides in the Private Sector to contribute to enhanced competitiveness,” Singh maintained.
He added that, given the global financial crisis, it is of importance to reflect on ways to promote a competitive environment.
“As we prepare for an environment that sees increased competition at the regional level and increased competition at the global level, it is important that the domestic private sector reflects on ways in which we can increase competitiveness,” Singh insisted.
He affirmed that change is needed to enhance access to banking services which would, ultimately, lead to growth and development at the national level.