Papua New Guinea
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People’s Micro Bank begins pathway to going commercial bank

BY LORRAINE WOHI

There is a need for more commercial banks in the country and the government’s desire to bring on board the People’s Micro Bank into commercial banking space will set the pathway for the country, says the Minister for State Enterprise, William Duma.

He said the country needs more competition in the banking space.

“We have seen Bank South Pacific (BSP) becoming a very dominant player which is good news for the shareholders and for all of us.

For any country we must have competition in the banking sector and with Sir Robin Fleming leading our new bank as the chairman, I see good things coming for us starting with the banking sector as well as for other sectors in the country,” Mr Duma said.

People’s Micro Bank Limited (PMBL) , a subsidiary company of the National Development Bank has taken the first step forwards appointing the new Chairman to lead the transition pathway for the bank.

The bank’s newly appointed chairman, Sir Robin Fleming said the bank will now go through normal regulatory process needed to set up a commercial bank in the country.

“PMBL has been in a process of applying for full commercial banking License for sometimes now and that includes the regulatory approvals from the Bank of PNG.

“The regulatory authority has indicated a number of pre conditions that they want to see it delivered especially in the combination of banking system if fit for purpose and the executive team is fully capable of capital support.

“PMBL has been fully benefited by the capital support and the commitments capital from the KCH so that the shareholding will be broaden not just National Development Bank and KCH,” Mr Fleming said.

Mr Fleming said there is a lot of work and effort that needs to be put into developing the team at the Board and Management level.

“This is something that we need to put a lot of focus on to get the vision and the understanding on what we need to achieve and how we are going to achieve the journey into establishing as a commercial bank and that the process does not happen overnight,” Mr Fleming said.

Prime Minster, James Marape will soon announce the name and will launch the Logo of the new bank.