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Accurate, Relevant, Fair Credit Reporting Crucial for Financial Stability
The Bank of Guyana has reiterated the importance of a robust mechanism for reporting credit information that is accurate, relevant, fair and ensures confidentiality. This framework is essential for facilitating increased access to finance and contributing to the overall stability of the financial system.
Background
In 2013, the Bank licensed Credit Info (Guyana) Incorporated as the sole credit bureau in Guyana, which has since operated under strict supervision. The Credit Reporting Act was amended in 2016 to improve the efficiency of the system, mandating that credit information providers share data with the credit bureau and obtain prior written consent from consumers.
Enhancements
Enhanced Supervision and Protection for Insurance Sector
The Insurance Act 2016 has enhanced the supervisory powers and responsibilities of the Bank, promoting competition in the insurance industry and protecting consumers. The Act provides a consolidated legal framework for the prudential supervision of insurers, ensuring their financial soundness and the protection of policyholders.
Key Benefits
- Promotes competition in the insurance industry
- Protects consumers
- Ensures financial soundness of insurers
National Payments System Act Supports Efficient Payments
The National Payments System Act 2018 has created a sound legal framework for the operation and oversight of the payments system in Guyana, facilitating its effective modernization. The Act defines the role and functions of the Bank in regulation and oversight, ensuring the security and efficiency of electronic payments.
Key Features
- Creates a sound legal framework for the operation and oversight of the payments system
- Ensures the security and efficiency of electronic payments
Deposit Insurance Scheme Provides Protection for Depositors
The Deposit Insurance Act 2018 has established a Deposit Insurance Scheme to protect depositors’ funds, comprising a Deposit Insurance Fund and a Deposit Insurance Corporation. The Bank plays an important role in the establishment and functioning of the corporation, ensuring financial stability through depositor protection and resolution financing.
Key Benefits
- Protects depositors’ funds
- Ensures financial stability through depositor protection and resolution financing
Conclusion
These legislative reforms demonstrate the Bank’s commitment to promoting a stable and efficient financial system, ensuring access to finance for all sectors of society.