Foreign-funded loans were the single biggest driver behind the expansion of Guyana’s non-bank financial sector in the first half of 2025, according to the Bank of Guyana’s mid-year report.
The financial resources of Non-Bank Financial Institutions (NBFIs) climbed by 7.9 per cent, or $38.3 billion, to $521.5 billion at the end of June 2025, reversing a 3.7 per cent decline recorded over the same period last year. Much of that growth was linked to a sharp increase in foreign liabilities, which surged by 42 per cent, or $11.9 billion, to $40.2 billion.
The central bank attributed this jump primarily to foreign-funded loans from parent companies, subsidiaries and affiliates of finance companies, which rose by $15.0 billion during the review period.
Despite the increase in overall resources, NBFIs accounted for a slightly smaller share of the financial system, holding 28.8 per cent of total sector assets at the end of June, down from 29.6 per cent at the end of December 2024.
Alongside foreign borrowing, deposits within the sector rose by 9.8 per cent, or $8.0 billion, driven almost entirely by a $7.7 billion increase in share deposits at the New Building Society. Pension funds also strengthened, growing by 7.8 per cent, or $8.5 billion, compared with a decline during the corresponding period in 2024. Other liabilities expanded by 4.8 per cent to $266.0 billion, while insurance premiums moved in the opposite direction, falling by 21.8 per cent to $8.1 billion.
On the asset side, NBFIs channelled much of their resources into “other assets,” which jumped by 52.5 per cent, or $28.4 billion, to $82.6 billion. This was largely due to higher debtors’ payments and tax recoverables by finance companies. Claims on the banking system also increased by 8.1 per cent to $55.5 billion, reflecting stronger deposits by trust and pension companies at local commercial banks.
Claims on the private sector grew modestly to $322.9 billion, while exposure to non-residents edged up to $51.0 billion. In contrast, investments in the public sector declined by 4.7 per cent to $9.6 billion, driven by a sharp reduction in holdings of Government of Guyana Treasury Bills.
The data point to a period of renewed expansion for non-bank institutions, with foreign financing playing a central role in reshaping the sector’s balance sheet during the first half of 2025.
