…wants customers to be compensated for inconvenience
In the wake of weeks of complaints from Republic Bank customers about the service following an upgrade to its system, the Bank of Guyana is considering amendments to the legislation to allow it to institute specific penalties against commercial banks for poor service and other infractions.
This was revealed at the Ministry of Finance on Wednesday by Bank of Guyana Governor, Dr Gobind Ganga, after the signing of a Memorandum of Understanding (MoU) for the Natural Resource Fund. According to Ganga, they are, in fact, considering a suite of legislation to give the central bank the teeth it needs to discipline banks.
“There are a number of persons who have been disappointed as to their conduct when it comes to this new platform they’re trying to put in place. The central bank is also very disappointed. We’ve been in contact with Republic Bank to ensure they have the necessary structure in place but I should tell you they have been very, very slow”.
He added that at the last meeting that was held with the Bank’s CEO, Amral Khan, it was conveyed that the Bank was trying its best to rectify the issue.
“But that very best is still not what we are accepting. So we are ensuring that they are continuously addressing this issue to make it more acceptable to the public. We are hoping that when this platform is put in place, they’ll be able to compensate the customer some way or the other”.
It was pointed out by Finance Minister Winston Jordan that the Bank of Guyana does have the authority to issue circulars reprimanding banks. Ganga also noted that the central bank will be meeting with the Guyana Association of Bankers on Friday to discuss its concerns.
The Bank’s Governor noted that when they do move towards sanctions, it’s going to be a substantial one. When asked, however, Ganga shied away from singling out Republic Bank for sanctions.
Republic Bank was in the process of transitioning its services for much of last month. During that time, customers complained of long lines and in some cases, the unavailability of certain services.
This came little over a month after the Central Bank of Guyana denied Republic Financial Holdings Limited, the parent company of Republic Bank (Guyana), permission for the purchase/acquisition of the operations of Scotiabank in Guyana.
In late November 2018, after the proposed buyout was announced, Opposition Leader Bharrat Jagdeo had stated that Republic Bank Limited’s acquisition of Scotiabank’s operations in Guyana could be unhealthy for the local financial sector.
His statements came on the heels of the Canadian-based Scotiabank announcing that it has signed an agreement to sell its banking operations in Guyana and eight other Caribbean nations to Republic Financial Holdings Limited.
