The People’s National Congress Reform (PNCR) is calling for greater scrutiny of Guyana’s exposure to developments in Trinidad and Tobago’s banking sector, warning that the country’s growing reliance on Republic Bank makes regional financial risks a matter that cannot be overlooked.
PNCR General Secretary Sherwin Benjamin raised the concern against the backdrop of recent executive and board-level changes in Trinidad and Tobago, arguing that Guyanese regulators should assess potential cross-border risks before they develop into a domestic financial problem.
Benjamin pointed to the announced departure of First Citizens Group Financial Holdings CEO Jason Julien, who is scheduled to leave the state-majority-owned institution on August 31, 2026, after nine months and nine days in the position. Julien has said he was “definitely not forced out” and is leaving to take up an opportunity with a US-listed Nasdaq company outside the financial sector.
The departure follows other changes at senior levels of First Citizens and has prompted broader discussion in Trinidad and Tobago about corporate governance, board independence and the relationship between government ownership and management of major financial institutions.
Benjamin said the developments should also attract attention in Guyana because Republic Financial Holdings Limited (RFHL), the Trinidad-based parent of Republic Bank Guyana, has undergone significant board changes following increased government involvement in the banking group.
In October 2025, Trinidad and Tobago Finance Minister Davendranath Tancoo announced that the government intended to secure a majority of directors on Republic Bank’s board, citing concerns including access to foreign exchange and alleged unfair practices. By December, seven government-nominated directors had been elected to the 13-member RFHL board.
Government-related entities held more than 51 per cent of RFHL, according to reporting following the company’s December 2025 annual meeting.
Benjamin said the developments raise a broader question about the appropriate level of government influence over major financial institutions.
“How much government influence is appropriate in institutions whose stability depends heavily on public confidence, sound corporate governance and regulatory independence?”
The issue is particularly relevant to Guyana because Republic Bank is one of the country’s major commercial banks. Its 2019 acquisition of Scotiabank’s Guyana operations significantly expanded its presence in the local financial sector.
Republic Bank Guyana’s 2024 annual report illustrates the scale of its operations. The bank reported approximately G$350.6 billion in total assets and G$304.4 billion in deposits at September 2024, with deposits increasing by more than G$53 billion during the year.
Benjamin stressed that his concern should not be interpreted as an allegation that Republic Bank is currently experiencing financial difficulties.
“This is not an allegation that Republic Bank is presently experiencing financial distress. Nor is it a prediction that such distress will occur. It is a question of systemic risk preparedness.”
He said Guyanese authorities should nevertheless examine how financial difficulties at a regional parent could potentially affect a local subsidiary, including through liquidity, capital, related-party exposures, governance and operational dependencies.
Benjamin is calling on the Bank of Guyana to maintain rigorous stress testing and contingency planning for major domestic banks with regional parents. Such assessments, he said, should determine whether local subsidiaries could withstand severe disruption elsewhere within their banking groups.
The concern comes as Guyana’s economy undergoes rapid expansion driven largely by the oil and gas sector, increasing demand for banking services to support payments, credit, investment and business activity.
Benjamin also cautioned against creating unnecessary public alarm.
“The question is not whether Guyanese depositors should panic. They should not.”
Instead, he said, the Bank of Guyana and Ministry of Finance should reassure the public that cross-border banking risks are being monitored and that contingency arrangements are in place to safeguard the financial system.
“Financial stability is ultimately about resilience,” Benjamin said.
He argued that Guyana’s expanding economy makes banking-sector concentration, corporate governance and regulatory independence increasingly important considerations.
“The time to examine systemic risk is before a crisis, not after one,” he said.
For Benjamin, the developments in Trinidad and Tobago should serve as an opportunity for Guyana to strengthen its financial safeguards and assess its exposure to regional banking risks before external pressures become a domestic problem.
“Are we paying attention?”
