Jagdeo notes need for more retail banking in Guyana as talks continue with Citibank

Discussions are ongoing with Citibank regarding the expansion of banking services in Guyana.

Vice President Bharrat Jagdeo on Thursday said these discussions are important when examined against the challenges faced by Guyana and other small countries in attracting major international banks, as well as the government’s efforts to deepen the local financial sector.

“We are hoping to see more retail banking in Guyana from the large banks,” Jagdeo stated, acknowledging that many international banks have exited the region in recent years due to shifting global risk and program strategies.

He pointed out that Citibank, which had previously been in talks to open a commercial bank in Guyana, has scaled back its retail banking operations across Latin America.

The bank now maintains only a presence in Mexico and may even exit that market. However, Jagdeo clarified that Citibank remains open to establishing a representative office in Guyana, which would enable the bank to provide loans to local businesses.

Jagdeo also touched on the government’s efforts to improve the financial landscape in Guyana, including proposed legislation that would allow businesses to use more movable collateral to secure loans.

“We hope this will help deepen the financial sector and encourage more sophisticated financial transactions,” he explained. The legislation is expected to be introduced to Parliament soon.

As Guyana transitions to a more digital society, with advancements in biometrics and digital banking, Jagdeo expressed optimism that these technological developments could improve credit intermediations in the future.

He further emphasized the importance of collaboration with local banks to create a more accessible and robust financial environment for businesses and individuals alike.