Bank of America is severing its ties with Guyana banks as early as in August, according to Guyana’s central bank governor Dr Gobind Ganga. He said there are a number of factors for BofA’s decision. One would be that BofA is talking about de-risking, another factor would be the high level of liquidity, the bank wants to concentrate more on larger customers, he said. Banks in Guyana had depended on Bank of America to allow for the smooth flow of transactions between Guyana and North America. If Guyana citizens have to do a transaction in the US, they have to make a payment or receive a payment, that cheque or swift message to be done by a corresponding bank in the US, in particular, Bank of America, that wouldn’t happen. They will have to go somewhere else to find someone that will accept that funds, Ganga said. He added the pullout may not have any implications for the country as other banks from North America and Europe have already expressed an interest in filling the void.
Bank of America is set to sever its ties with Guyana banks in an effort to increase its concentration on larger customers, enjoy a higher level of liquidity and separate itself from potential risks. The bank said it would end all business relationships with the country’s largest commercial bank, First National Bank, which has been mired in controversy over allegations that it helped launder money for drug cartels.