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Accurate Credit Reporting Crucial for Financial Stability, Says Central Bank
Georgetown, Guyana - The Central Bank has emphasized the importance of accurate credit reporting as a crucial mechanism to ensure the stability of the financial system and facilitate increased access to finance.
Accurate Credit Reporting
According to the institution, a mechanism for reporting credit information that is accurate, relevant, fair, and ensures confidentiality is pivotal to achieving these goals. The Bank licensed Credit Info (Guyana) Incorporated as the sole credit bureau in Guyana in 2013, with supervision conducted through on-site inspections and off-site monitoring.
Consumer Protection
The legislation also addresses the rights and protection of consumers, designating other entities that grant credit as credit information providers. In 2016, the Credit Reporting Act was amended to improve the efficiency of the system, mandating that credit information providers share credit information with the credit bureau prior to granting or renewing credit facilities, and obtain prior written consent from consumers.
Insurance Sector Reform
The Insurance Act 2016 aimed to enhance the supervisory powers and responsibilities of the Bank, promote competition in the insurance industry, and protect consumers. The Act was brought into operation in April 2018, with implementing regulations published shortly thereafter.
Key Features
- Provides a consolidated legal framework for the prudential supervision of insurers
- Introduces a new Solvency assessment and Management (SAM) regime
- Establishes an introductory framework for insurance group supervision
- Aligns with international standards and best practices to address the “post-Clico debacle” period
National Payments System Reform
The National Payments System Act 2018 aims to create a sound legal framework for the operation and oversight of the payments system in Guyana, facilitating its modernization.
Key Features
- Defines the scope of the payments system
- Outlines the role and functions of the Bank in regulating and overseeing payment activities
- Establishes a comprehensive set of provisions on important aspects of the payments system, including processing, clearing, and settlement
- Implementing regulations will support the Act’s implementation
Deposit Insurance Scheme
The Deposit Insurance Act 2018 seeks to provide protection for depositors’ funds by establishing a Deposit Insurance Scheme.
Key Features
- Establishes a Deposit Insurance Fund and a Deposit Insurance Corporation responsible for managing the fund and related purposes
- The Bank will play a key role in the establishment and functioning of the corporation, serving as sole subscriber of the capital and exercising governance and cooperation responsibilities
- Expected to come into force in 2019