Bank of Guyana Issues Guidelines for Insurance Business, Domestic and International

The Bank of Guyana has recently issued guidelines for the insurance business, both domestic and international, as part of its supervisory authority.

Background

The Credit Reporting Act 2010 was enacted to oversee credit reporting in Guyana. The development of an effective mechanism for the reporting of credit information is crucial for facilitating increased access to finance and contributing to financial stability. The Bank has licensed Credit Info (Guyana) Incorporated as the sole credit bureau in Guyana.

Amendments

Credit Reporting Act 2016

The Credit Reporting Act was amended in 2016 to improve efficiency. The amendment mandates that a credit information provider pulls a credit report from the credit bureau prior to granting or renewing credit facilities. It also removes the requirement for consumer consent and requires entities to share credit data with the credit bureau.

Insurance Act 2016

The Insurance Act 2016 repealed and replaced the Insurance Act of 1998 and the Insurance (Supplementary Provisions) Act of 2009. The new Act enhances supervisory powers, promotes competition in the insurance industry, and protects consumers.

Other Key Legislation

National Payments System Act 2018

The National Payments System Act 2018 creates a sound legal framework for the operation and oversight of the payments system in Guyana. It defines the role and functions of the Bank in regulating and overseeing activities related to processing, clearing, and settlement.

Deposit Insurance Act 2018

The Deposit Insurance Act 2018 establishes a Deposit Insurance Scheme for the protection of depositors’ funds. The scheme includes a Deposit Insurance Fund and a Deposit Insurance Corporation responsible for managing the fund and other related purposes.

Conclusion

These pieces of legislation aim to promote financial stability, protect consumers, and enhance the overall efficiency of the financial system in Guyana. By issuing guidelines for the insurance business, both domestic and international, the Bank of Guyana demonstrates its commitment to supervising and regulating the country’s financial sector.