GUYANA stands at an economic inflection point, propelled by unprecedented growth and diversification.

But as Senior Minister Dr. Ashni Singh and President Dr. Irfaan Ali so succinctly put it, such dynamic change calls for a corresponding balanced change of an equally important partner: The banking sector.
The domestic banking sector, long a conservative force, has acted like a stabiliser, but its current lending approach, based largely on a “risk-free” property model, is no longer sufficient.

It’s time for Guyanese banking to shed its conservative shroud and embrace new, more inclusive lending practices which will be necessary to stimulate the country’s budding entrepreneurial culture.
The government has worked diligently to lay the foundation for this fundamental change.

The enactment in 2024 of the Moveable Property Security Act, and the establishment of an Electronic Collateral Registry is a quantum leap.

This legislative development permits a wide variety of moveable property, ranging from equipment and car assets to inventory, receivables, and even intangible property, to be employed as collateral for loans.
This is not just a technical shift; it is a strategic opening of capital to hundreds of thousands of new and existing entrepreneurs and small and

medium businesses (SMEs) which possess quality operations assets and not traditional real estate assets which are preferred by banks.

In a rapidly growing economy where new industries are emerging and others are growing rapidly, access to finance remains a major hindrance.

While, admittedly, a number of banks have begun to pilot these new mechanisms cautiously, Dr. Singh states that the implementation pace is just “not occurring as rapidly as we would like to observe it occurring”.
President Ali’s insistence that the banks be more proactive; that they “seek out new opportunities” and “create an ecosystem” to bring about national growth constitutes a fundamental shift in expectation.

The role played by a bank in a rapidly developing economy extends beyond just deposits and safe lending; it requires vision, innovativeness, and breaking out of habitual comfort zones.

The regulatory and legal frameworks are now solidified, but apparently, not all institutions are interested in using these measures fully, instead of clinging to traditional models.

This resistance, understandable though it is in view of past prudence, is now bordering on being a hindrance to national progress. The government’s evident eagerness to attend to and potentially “upgrade” this issue onto its agenda ensures that mere compliance will not be enough; active participation in restructuring is expected.

The banking sector in Guyana has to make a change in attitude and practice so that it continues to be relevant and be able to support subsequent growth in emerging sectors and traditional sectors. They ought to be active advocates for growth, embracing fresh lending that responds to the economic trends in the country, so that prosperity is not just for privileged elite groups, but for each Guyanese entrepreneur.