–with passage of Financial Institutions (Amendment Bill) in the National Assembly

SENIOR Minister in the Office of the President with Responsibility for Finance and the Public Service, Dr Ashni Singh, as part of the government’s broad agenda to build and strengthen the legal framework and to improve access to credit, on Monday, successfully piloted in the National Assembly, the Financial Institutions (Amendment) Bill 2024, Bill Number 22 of 2024, which caters for the establishment of representative offices by foreign financial institutions.

Representative offices of foreign banks bring international experience and technology that allow these institutions to showcase the products and services that can complement and enhance the domestic banking system.
The financial sector is vital to the development of industry and trade in any economy. A modern, organised, well-regulated financial system allocates financial resources to areas in such a manner that they contribute to economic growth, physical capital accumulation, and economic efficiency.
This Bill is part of the government’s broad agenda to build and strengthen the legal framework in tandem with all stakeholders, including consumers and the private sector, to support business development in Guyana and to continue to create an enabling environment for fostering development.
While contributing to the debate, Dr Singh blasted the former administration (APNU+AFC) for decimating the economy while they were in office, noting that the current administration will continue to deliver for the people of Guyana, and the amended Financial Institutions (Amendment) Bill 2024 is another step by government to add to those already made to allow for a stable, sound and strong financial system.

As Dr Singh recalled, all the other legislation in the past brought to the House to strengthen the financial sector, noting that the work done to build a robust legal architecture was already being done over the years by the PPP/C.
There is similar legislation in other jurisdictions such as Trinidad and Tobago. He also said given the rate of economic growth occurring today, and the rate at which investor interest is growing, the amendment to the legislation is necessary, as Guyana has already received indications of interest from foreign financial institutions, and some of the largest in the world, who have expressed this interest in establishing representative offices in Guyana.

The banking and financial sector is critical as the government pushes to empower citizens to benefit from the massive economic transformation taking place across this country.
Access to financing is a main pillar for the establishment of growth and success of both small- and large-scale businesses, as well as the economic empowerment of individuals and households.

Guyana’s financial sector has shown significant improvements in recent years in key performance indicators, reflecting a strengthening economy and robust regulatory oversight. Commercial banks deposits surged, growing by 88.5 per cent at the end of December 2024 to $967 billion when compared with the position at the end of 2020, driven by rising incomes and improved confidence in the banking system. From the end of 2020 to the end of December 2024, total credit to the private sector grew by 73.4 per cent to $450 billion, fuelled by increased lending to economic sectors such as services, manufacturing, agriculture and mining and quarrying.

Lending for real estate mortgage loans has also grown substantially, by 71.9 per cent over the same period. At the same time, the ratio of non-performing loans (NPLs) has declined from 10.8 per cent at the end of 2020 to 1.75 per cent at the end of December last year, aided largely by a rebound in economic activities, post-pandemic and protracted elections and enhanced risk-management practices.

These trends highlight Guyana’s financial sector’s resilience and its pivotal role in supporting the country’s economic transformation.
President Ali had highlighted last year: “There are a number of areas that are critical to the development of this modern infrastructure that we want to build here in Guyana…the digitisation of our economy, the speed and efficiency of which we can process transactions, the efficiency of the Public Service,

the openness and transparency of the system, developing a system that is rule-based and systemic in nature, one that removes human biases and one that ensures there’s predictability in everything we do. That is what modernisation is about”.
These reforms demonstrate the government’s continued commitment to ensuring that the new economy benefits all Guyanese. The government has also expressed the firm belief that everyone should have equal access to participate fully in the economy. (Ministry of Finance)