Dear Editor,
Recent comments on the local banking sector from HE at the PSC’s annual dinner suggest that he is confused on the matter. HE suggest that the banks, who are also mostly privately owned, are not doing enough to invest in expanding certain sectors. This is true and factual, however, it is not the fault of the private banks but the realities of operating under the draconian AML/CFT and governance regime currently set by the government.
HE has expressed these same sentiments before, but sadly, his government had not listened to the banks and thus no changes have been made. The banks cannot be liberal with their lending if the legislations does not allow for it. The banks are here to make profits and they have been making billions annually, they are comfortable with what they are making, what will HE now do to ensure that more capital, held by the banks, are released into the underserved sectors that are targeted for growth?
Further, I say no developed economy depends, as much as we do, on capital from the banking sector. This is usually done through the stock market. In developed countries, the stock market is the primary source of raising capital. Our stock market is below par, when compared to other stock markets in the region, much less the wider world.
Comments made by HE on developing a frame work for increasing Guyanese wealth was encouraging, however, without visionary legislation and incentives for the financial sector this will always remain an after taught. I have never met or heard of a billionaire that earned his/her wealth from the salary he/she earns. We can only become wealthy if we invest. I have looked high and low and, it is sad to say, Guyana’s existing financial framework does not look encouraging.
Sincerely,
Marcus Perry
