Several foreign banks eyeing expansion in Guyana – Finance Minister

Several global financial institutions have expressed keen interest in establishing a presence in the country, with the introduction of the Financial Institutions Amendment Bill of 2024.
Finance Minister Dr Ashni Singh on Monday emphasised the Government’s concerted efforts to fortify the financial sector and attract international investments, as the nation vigorously works to expand and diversify its economic landscape.
During the 101st sitting of the 12th Parliament, Singh explained that the Financial Institutions Amendment Bill 2024 seeks to amend the Financial Institutions Act, a law that has been the cornerstone of Guyana’s banking regulations for years.
According to Singh, the proposed amendment introduces Section 19A, which will allow foreign financial institutions to establish representative offices in Guyana.
“I would like, Mr Speaker, to emphasise the significance, importance and profundity of the section that we are seeking to insert in the Principle Act today. Given where our economy is today, Mr Speaker, given the rate of economic growth that we are observing, on which matter I spoke earlier today, given the rate at which international investor interest is growing in the Guyanese economy today, this investor interest is not confined only to the non-financial sector, but large financial institutions worldwide also have an interest in establishing a presence in Guyana, and potentially doing business in Guyana, and doing business with Guyanese, and indeed international companies operating in Guyana”.
“We have already received indications of interest by foreign financial institutions, and some of the largest foreign financial institutions in the world, interested in establishing a representative office in Guyana,” the Minister disclosed.
Singh further emphasised that the country’s robust regulatory framework has been developed over the years to ensure the stability and transparency of the financial sector.
With the inclusion of foreign representative offices, Guyana is poised to see a broader influx of international investors, signaling an economic boom for the nation.
The Finance Minister told the National Assembly that the establishment of representative offices will allow these foreign banks to familiarise themselves with the local market, explore business opportunities, and potentially set the stage for a full presence in the country.
Nevertheless, he explained that all foreign financial institutions would be subject to approval by the Central Bank of Guyana.
“We see this as an extremely welcome step. It is a first step to the establishment of a full presence. It allows them to acquaint themselves with the Guyanese economic landscape in a more direct manner. It allows them potentially to identify opportunities for doing business in Guyana, and explore those opportunities. Be that as it may, they are subject, of course, to an initial round of regulatory supervision, because they still require, as this section provides, they still require the approval of the Central Bank before they are able to establish this presence. And were they to establish a full presence, they would require a full-service licence from the Central Bank and those provisions remain intact and unaffected by the current Bill,” he added.
The Financial Institutions Amendment Bill of 2024 is expected to stimulate investments and foster stronger international financial ties, positioning Guyana as an attractive destination for global financial players. Additionally, the legislation will enhance the transfer of assets and allow greater collaboration among local banks, urging them to modernise their business practices to meet international standards.
As the country continues to evolve into a prominent financial hub in the region, Dr Singh expressed confidence that the passage of this bill will be a pivotal moment in Guyana’s economic development, noting that with a robust legal and institutional framework now in place, Guyana is expected to thrive in an increasingly interconnected global financial system.