Amendments to Financial Institutions Bill does not allow for political interference – Min. Gaskin

DPI, Guyana, Thursday, July 12, 2018

Minister of Business, Dominic Gaskin has dispelled Opposition’s argument that the revisions in the Financial Institutions (Amendment) Bill allows for political interference.

The minister, speaking today during the 90th Sitting of the National Assembly, said the previous bill allowed for the involvement of the Minister of Finance, Winston Jordan, in the revocation of the licenses of financial institutions found to have infractions.

Minister of Business, Dominic Gaskin.

With the Amendments, this will no longer be the case, this authority will now rest with the Central Bank.

Minister Gaskin argued that the Coalition Government has consistently brought legislation and amendments to legislation that seek to empower regulatory agencies.

He emphasised the importance of an effective regulatory framework to reduce failure of financial institutions, making reference to the failed Globe Trust Investment and Company Limited.

The amended Bill, the Business Minister said, concurs to best practices as outlined by the Financial Safety Board.

He added that a financial institution whose license has been revoked by the Bank of Guyana may appeal that decision in the court of law.

According to the amended bill, the Bank of Guyana may revoke a license if the bank or other financial institution; “has provided to the Bank false, misleading or inaccurate information in connection with an application for a license; ceases to carry on a banking or financial business in Guyana; fails to comply satisfactorily with any of the provisions of this Act or regulations made under this Act, which are applicable to the financial institution or any other Act to which it is subject,” among others.

Further, in response to an accusation by Opposition Member of Parliament, Irfaan Ali, Minister Gaskin refuted that Guyana is in an economic crisis. He reminded that certain indicators precede a crisis, such as a recession.

The Financial Institutions (Amendment) Bill was read a second time, earlier today by Minister of Finance, Winston Jordan.

By: Stacy Carmichael.