In keeping with its role to supervise the operations of financial institutions, Bank of Guyana conducted a series of examinations last year. During the period under review, the Bank’s Supervision Department conducted 20 examinations.

In its report, it was noted that seven examinations were conducted on the operations of commercial banks and a non-bank financial institution. Six of the seven examinations were risk-focused while the other was a special examination to follow-up on the implementation of outstanding recommendations of an examination which was previously conducted on a non-bank financial institution. Additionally, one examination was conducted on the operation of a Money Transfer Agency (MTA) and twelve examinations were conducted on the operations of the Cambios.

The department’s report said that the examinations which were conducted on the operations of the banks and non-banks revealed that the institutions were generally in compliance with the requisite statutory and regulatory requirements, notwithstanding minor infractions. The Supervision Department did note however, that there were deficiencies that related to credit quality and administration, internal controls, Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT), corporate governance practices and risk management.

In fact, the deficiencies in relation to the examinations of the MTA and Cambios, pertained mainly to AML/CFT compliance.

Further to this, the department said that the deterioration in asset quality continued to trigger enhanced monitoring and intensive follow-up actions in an effort to ensure the level of credit risk does not escalate further.

Notwithstanding this, the department said that the financial institutions were generally committed to good corporate governance practices in accordance with legal and prudential requirements and international best practices.


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