Guyana Development Bank to have robust systems for risk management, financial oversight – Min. Ally

With the necessary legislative framework now in place to govern the establishment of the Guyana Development Bank, the Government has begun setting up regional offices and recruiting the technical personnel required to support the operations of the State-backed financial institution.

This is according to the Public Service, Government Efficiency and Implementation Minister, Zulfikar Ally, during an interview with this publication on Tuesday.

Technical staff

Among the positions to be filled are project officers, accountants, specialists in project proposal development, and professionals with expertise in financial literacy and marketing. Minister Ally emphasised that the goal is to ensure the bank is staffed with technical professionals who can support prospective borrowers at every stage of their entrepreneurial journey, from developing a business idea into a viable proposal to providing guidance that helps ensure the business operates successfully.

“It will provide training, mentorship, and business support. This is a very important point, because finance alone does not guarantee success. Many entrepreneurs have strong ideas and real potential, but they may lack access to formal business training, accounting systems, marketing knowledge, digital tools, or operational guidance,” the Public Service Minister explained.

“The inclusion of financial literacy training, mentorship, and technical guidance reflects a deeper understanding of what small business growth actually requires. A business cannot grow sustainably if the owner does not know how to manage cash flow, separate personal and business finances, prepare basic records, price products appropriately, or plan for growth. By providing this kind of support, the bank helps to close the gap between access to money and the ability to use that money effectively,” he further emphasised.

Offices

Efforts are also ongoing to establish offices of the Guyana Development Bank in every Administrative Region to ensure equitable access to its services. Minister Ally said some locations being examined include the Government service centres, regional offices, and even branches of commercial banks in remote communities.

He explained that the idea is to ensure the locations are central and easily accessible to everyone. Minister Ally added that the Government is working assiduously to ensure the regional offices are established and operational as quickly as possible, allowing the bank to begin delivering its services at the earliest opportunity.

Moreover, Minister Ally noted that maintaining a strong regional presence allows the bank to understand the unique needs of communities while maintaining centralised control over policy, risk, monitoring, and recoveries.

Governance risk, repayment

Further, the Public Service Minister acknowledged the governance risk associated with the implementation of such a financial institution, but assured that systems are in place to ensure principles of accountability and transparency are embedded in the operations of the Guyana Development Bank.

“Our Guyana Development Bank will operate under transparent reporting measures and continuous monitoring. The bank’s management information system will be the authoritative system of record for disbursements, repayment schedules, arrears, recoveries, and development impact indicators. This is how the institution protects public funds: not by avoiding risk altogether, but by making risk visible, documented, monitored, and governed,” he explained.

Ally further highlighted that the bank will be guided by a clear governance framework, led by a board and chief executive officer, and supported by credit, risk, compliance, finance, treasury, Information Communication Technology, monitoring, recoveries, and regional representatives.

“It also provides for regional peer review groups in each of Guyana’s 10 Administrative Regions, supported by technical and credit officers. Robust systems for risk management, financial oversight, compliance and monitoring will ensure that every loan is assessed fairly, responsibly and transparently,” he noted.

“It is our responsibility to ensure that these resources are managed prudently and responsibly. Therefore, the bank will operate on systems. The bank will operate under strong financial controls, such as a centralised loan ledger, standardised borrower references, controlled disbursement accounts, collection accounts, daily reconciliation, maker-checker controls, exception reporting, audit trails, and portfolio dashboards,” the Minister added.

Moreover, he explained that borrowers will be able to make repayments through authorised channels while the credit record remains centrally controlled, adding that “the model therefore separates cash movement from credit record keeping”.

Impact indicators

Minister Ally further emphasised that the Guyana Development Bank should not be judged only by how much money it disburses, but by the impact those disbursements produce.

He stressed that “when we talk about impact, we are referring to how many jobs were created? How much lending reached businesses operating outside of traditional coastal communities? How many businesses are still thriving after receiving support?”

“Those are only some of the indicators that will determine if the Guyana Development Bank has fulfilled its mandate,” he noted.

Through the Guyana Development Bank, eligible applicants will be able to access zero-interest, zero-collateral loans of up to $3 million to start or expand their businesses. Additionally, the Government has secured agreements with commercial banks to leverage those funds, allowing small business owners an additional $7 million in financing, at subsidised interest rates as low as 3.5 per cent. Some US$100 million has already been budgeted to kickstart the initiative.