“There is room for banks to be more aggressive in lending to private sector” – Finance Min Singh

With Guyana’s rapidly growing economy, Senior Minister with Responsibility for Finance, Dr Ashni Singh, believes that the local banking sector needs to move away from the risk-free lending practices and be more aggressive in its offerings, especially to the private sector.
“The banking sector has historically been conservative, erring on the side of risk-aversion, which is not necessarily a bad thing, because we want strong banks and strong balance sheets, and we want them to maintain good quality portfolios. But there is room, I believe, for the banking sector to be more aggressive in relation to lending to the Guyanese private sector,” Dr Singh asserted.
He was at the time interacting with representatives from a 19-member Jamaican Business Mission that were in Guyana on a two-day visit to explore potential investment opportunities here.

Following a presentation to the visiting delegation on Friday at the Marriott Hotel in Georgetown, the Finance Minister engaged the group, during which he was asked about the diversification of collateral in Guyana beyond the use of land or properties.
In response, Dr Singh revealed that this is a topical issue in the country right now, and Government has been working with the local banking sector to allow them to be more aggressive in their lending portfolio.
On the policy side to facilitate this, the Finance Minister explained that the Guyana Government has already enacted legislations specifically to allow movable assets to be accepted as security for loans.
“So, that legislation is enforced right now,” he noted.
Back in December 2024, the Security Interest in Movable Property Bill 2024 was passed in Guyana’s National Assembly with the aim of establishing a modern, comprehensive framework for secured transactions involving movable property.
Historically, the requirement for immovable property, such as land, as collateral made it extremely difficult for low-income individuals and small and medium-sized enterprises (SMEs) as well as vulnerable groups to obtain credit. This new law now transforms the lending environment and enable economic opportunities for all thus creating a more inclusive and efficient financial system in Guyana.

The legislation simplified the use of movable assets, such as equipment, inventory, crops, intellectual property, and receivables, as collateral; streamlined the registration and enforcement process by establishing an Electronic Collateral Registry to replace outdated manual systems; and increased credit access for SMEs, women entrepreneurs, and individuals without immovable property, fostering financial inclusion and economic empowerment.
Meanwhile, Minister Singh further informed the Jamaican Business Mission that the Guyana Government has also been working with the local banking sector to enable them to accept more financial assets, like receivables and invoices that can be pledged – a standard technology in most sophisticated banking systems around the world. According to the Finance Minister, while some banks are already doing this, Government would like to see more take up of this by the local financial institutions.
“So, the legal framework is in place. Banks now need to respond to that legal and regulatory framework – step out a little bit from their historic comfort zone, which is almost risk-free lending; lending secured by real estate. It’s happening, but it’s not happening as quickly as we would like to see it happen.”
“I think it’s something that we have on the radar to be elevated in the list of priorities in the next five years. But the frameworks are there in place already and it’s really a question of how banks respond to it,” Dr Singh asserted.
The Security Interest in Movable Property Bill 2024 was the latest instalment in the series of legislation to strengthen the financial sector.
Since assuming office in August 2020, the current People’s Progressive Party/Civic (PPP/C) Administration piloted various pieces of legislation in the financial sector as part of a broad agenda to build and strengthen the country’s legal framework.
Amongst the pieces of financial legislation already brought to the House over the past five years and later enacted, were the Bank of Guyana legislation and its subsequent amendments, the Financial Institutions Act (1995) and subsequent amendments, the initial Money Laundering and Prevention Act, the Anti-Money Laundering and Countering the Financing of Terrorism Act, the Money Transfer Agencies Act, the Credit Reporting Act, and the Compliance Commission Act.