Guyana’s President Dr. Irfaan Ali believes that the banking sector in Guyana remains largely old-fashioned even though there is much liquidity to tap into.
As such, he urged banks operating in Guyana to innovate and move beyond “accounting” transactions.
“…We have to find a way, an innovative mechanism, that we deploy to tap into the liquidity that exists in the system,” President Ali said at Saturday’s commissioning ceremony for Republic Bank’s new branch at Williamsburg, Region Six (East Berbice- Corentyne).
President Ali contended that the banking sector stands on “solid grounds” so what he believes can happen is that commercial banks operating in Guyana can stimulate further growth in the economy by supporting more investments.
And he had figures to support his position.
According to President Ali, the banking sector’s return on equity at the end of 2023 was 15.1% while the return on assets, 2%. Both figures, he said, far exceed statutory requirements, evidencing his statement of how “solid” the local banking sector is.
Further, he believes that the banks have a role to play in helping Guyanese become more financially sophisticated. That includes encouraging more electronic transactions instead of a continued, heavy reliance on cash. Doing so, he said, helps to integrate Guyana’s financial services with the rest of the world.
“You know I speak very frankly about the banking sector too because the banking sector has to do a lot more in modernisation,” Dr. Ali said on Saturday.
This isn’t the first time the Guyanese Head of State has called for the modernisation of the banking sector. He believes that more sophisticated banking services help propel the government’s plan of diversification and economic growth locally.
Republic Bank’s decision to open a new branch in Region Six, Dr. Ali said too, is also a move that helps to support the government’s plan for diversification and expansion in that region.
According to the President, Region Six is poised for much development in the coming years with new training centres, public infrastructure and private sector investments in the works.
