The market focus of banks and the allocation of resources

20160124mr lucas logoMarket focus

In the last article, an assessment was made of the comparative size of four commercial banks in Guyana and their growth performance.  In doing so, two principal issues were observed.  One was the highly concentrated nature of the industry and the other was the highly profitable nature of the industry.  The article this week will look at the market focus of the banks and the allocation of resources.  In this instance, cognizance would be taken of the participation of all the banks in the banking industry in Guyana.

 

Source of deposits

Before looking at the lending preferences of the commercial banks in Guyana, it would be interesting to see from where the deposits of the banks are coming.  As at the end of December 2015, the commercial banks had G$356 billion in deposits.  The commercial banks got the bulk of their deposits from the private sector.  This group in the economy provided 78 percent of the deposits that commercial banks in Guyana held at the end of last year.  The government supplied….