‘Banks in traditional money management’ – Pres. Ali calls for more investment, innovation

President Dr. Irfaan Ali again raised concerns about Guyana’s “traditional” banking sector, noting that these entities must identify business opportunities for themselves and provide investments needed to make those ventures successful.

The Guyanese Head of State spoke at the opening of Tuesday’s Local Content Summit at the Pegasus Suites and Corporate Centre in Kingston, Georgetown.

His hour-long address focused on enlightening how locals can capitalise on the investments and policy changes of the government but he digressed to air his concerns about the banks in Guyana, as he has done several times before.

For him, local banks need to work with each other and they must change their traditional model of doing business.

“I keep mentioning that the banking model needs to change,” Dr. Ali lamented.

He added, “Banks can no longer be a counter where you deposit money.

“That is not banking, that is a traditional approach to money management,” Dr. Ali said.

So what does he want banks to do, or do more of?

The President encouraged the local banks to examine the liquidity that exists within the system, and determine how that can be leveraged to generate wealth.

That could involve a focus on investment banking where investment opportunities are identified and suggested to clients instead of waiting on clients to bring in business proposals for examination and funding. He believes that banks only engage in the latter currently, and opt for the least risky proposal.

And he is adamant that this model should change.

“The bank has to see itself in a facilitating role in the development and expansion of the economy and make investments in the deployment of capital for those opportunities,” the President said exasperatedly.