Dear Editor,
The recent announcement of substantial profits by banks in Guyana is both remarkable and concerning. For example, Guyana Bank for Trade and Industry (GBTI) reported profits of approximately $4 billion in 2023, while Republic Bank (Guyana) Ltd. recorded around $6 billion, representing a 20% increase over the previous year. Additionally, Demerara Bank reported an impressive profit of $3.8 billion, showing growth driven by the nation’s economic expansion. These figures underscore the booming success of our banks, but they also raise critical questions about how this success translates into benefits for the wider community.
Banks, as key financial institutions, have a duty to reinvest in the communities from which they draw their profits. Yet there is a lack of transparency regarding how much of these billions are being channeled back into community development. For instance, how much of these profits are supporting essential services such as affordable housing, small business development, or public infrastructure projects? A breakdown of product categories, such as low-interest mortgages, small business loans, and financing for community-based initiatives, would provide insight into whether these institutions are committed to the inclusive growth of Guyana’s economy.
In countries with similar economic growth trajectories, banks are required to publicly disclose their community reinvestment practices, allowing citizens to evaluate how well these institutions are balancing profit with public benefit. Such a framework in Guyana would help hold banks accountable and assure citizens that financial gains are being used to uplift and develop local communities.
As the financial backbone of our nation, banks must do more than generate profits for shareholders; they must show that they are committed to the nation’s broader development. Clear, regular reporting on their community reinvestment initiatives and socially beneficial products would help build public trust and ensure that financial growth is aligned with the interests of all Guyanese. It’s time to call on our banks to be transparent and accountable, contributing not only to shareholders but also to the well-being and future of our society.
Sincerely,
Keith Bernard
