Accurate Credit Reporting Crucial for Financial Stability
The Bank of Guyana has taken significant steps to ensure that credit information is reported accurately, relevantly, fairly, and confidentially, in a bid to facilitate increased access to finance and contribute to the overall stability of the financial system.
Background
In 2013, the Bank licensed Credit Info (Guyana) Incorporated as the sole credit bureau in the country. The legislation governing credit reporting was amended in 2016 to improve the efficiency of the system. The amendments mandated credit information providers to:
- Share credit data with the credit bureau
- Obtain prior written consent from consumers
- Pull credit reports before granting or renewing credit facilities
Key Developments
The Insurance Act 2016, which repealed and replaced the Insurance Act of 1998, enhances the supervisory powers and responsibilities of the Bank and provides for a risk-based approach to insurance supervision. The Act also promotes competition in the industry and protects consumers.
The National Payments System Act 2018 creates a sound legal framework for the operation and oversight of the payments system in Guyana. The Act defines the role and functions of the Bank in regulation and oversight of the payments system, including authority to regulate activities related to:
- Processing
- Clearing
- Settlement
The Deposit Insurance Act 2018 establishes a Deposit Insurance Scheme to protect depositors’ funds. The scheme will be managed by a Deposit Insurance Corporation, which will play a key role in fostering financial stability through depositor protection and resolution financing.
Quotes
“The Bank is committed to ensuring that credit information is reported accurately, relevantly, fairly, and confidentially.” - Governor of the Bank of Guyana
“These amendments demonstrate our commitment to improving the efficiency of the financial system and promoting financial stability.”
“In today’s digital age, accurate credit reporting is crucial for facilitating access to finance. These amendments will enable consumers to access credit more easily and promote economic growth.” - Financial Expert
Conclusion
The implementation of these acts will be supported by comprehensive regulations and guidelines, which will ensure that the financial system operates in a transparent and predictable manner.
“The Bank is committed to ensuring that the financial system operates in the best interests of consumers,” said the Governor. “These amendments demonstrate our commitment to improving the efficiency of the financial system and promoting financial stability.”
The Bank of Guyana has emphasized the importance of credit information accuracy and relevance in promoting financial stability and supporting economic growth. The implementation of these acts will help to ensure that the financial system operates in a fair, transparent, and predictable manner.