IN a bid to address customer concerns over disparate banking fees, President, Dr. Irfaan Ali, has urged the banking industry, represented by bodies such as the Bankers Association, to engage in self-regulation.
He made this call during his feature address at the commissioning of Demerara Bank’s $485 million branch at Leonora on the West Coast of Demerara on Friday.

Acknowledging customer complaints about inconsistent fees, the President highlighted the need for industry players to collaboratively set standardised fees, promoting transparency and fairness in banking practices.

During discussions, he acknowledged concerns raised by former Demerara Bank Limited’s CEO, Pravinchandra Dave, about the varying fees across banks and suggested that the industry should collaborate to establish standardized fee structures.
President Ali highlighted the importance of corporate governance and industry-wide cooperation to ensure fair and transparent practices.

He agreed with the notion that fees should be standardised, addressing common complaints from customers who question the disparities in charges among different banks.

“… we live in a very open society and services must be regulated by themselves sometimes. That is why you have the Bankers Association,” President Ali stated.
He further underscored the role of the Bankers Association in facilitating discussions among financial institutions to reach a consensus on standardised fees.

“The Bankers Association should meet and agree that across the board we are agreeing on this as the fee, so that government must not be seen as imposing a standard amount,” the Head of State said.

He stressed the necessity of addressing customer concerns to enhance transparency and fairness within the banking sector.
“That is what corporate governance is about. Yes, I agree…there must be standardisation because a customer complains every day to us,” the President said.

By doing so, President Ali said that the industry could contribute to the public good and enhance customer satisfaction.
Banking-fee regulation in Guyana is overseen by the Bank of Guyana (BoG), which in November 2021 proposed a standardised fee structure for local commercial banks.

The BoG had sent a proposal to local commercial banks for consultation on structured service fees, including a standard $50 fee for ATM withdrawals of up to $100,000 and a $2,500 cap on late fees for loans.
The proposed fee structure also recommends no charges for overactive bank accounts and a cap on late bank fees for loans at $2,500.

The BoG’s proposal aims to address the issue of banks charging customers for ATM usage and other technology-based services. The central bank is working on further regulations to address fees related to bank accounts and other financial services.

In addition to the BoG’s proposed fee regulation, the Financial Institutions Cap. 85:01 Act in Guyana requires licensed financial institutions to pay a fee to the Bank of Guyana. The Act also outlines the licensing process and requirements for banks and financial institutions operating in Guyana.