Asia Financial Services

After a flurry of activity in 2015, including a dual-listing initial public offerings (IPO), a key stock returning to the exchange after suspension and the writing of a series of major reforms, Papua New Guinea’s capital markets are rebounding. The benchmark stock index started to climb again in 2016 and continued to do so through early 2017,...

The amount of debt held by the national government of Papua New Guinea continued to increase in 2016, following consecutive budget deficits posted since 2012. As a result, the government has accessed the domestic and international markets to fund the deficit. However, according to the 2017 national budget, the debt-to-GDP ratio, which was 34.5...

Since the end of 2015 the Port Moresby Stock Exchange (POMSoX) has seen four companies exit for various reasons, decreasing the number of listed companies from 19 to 15. However, the same year saw an increase in the overall market value of the bourse from PGK51.3bn ($16.3bn) to PGK78bn ($24.7bn).

Term deposits include investments offered by the commercial banks and financial institutions of Papua New Guinea. The terms range from 30-day deposits to 364-day deposits. According to the Bank of PNG (BPNG), the country has four commercial banks and 11 authorised deposit-receiving financial institutions.

Papua New Guinea’s banking sector is sound, stable and profitable. Despite slow economic growth in the country in recent years, institutions have managed their exposures well and entered the current weak patch in a strong position. They are generating good results and investing in future growth. Regulation is solid and improving, with the...

By most measures Papua New Guinea is under-banked. Branch density is low and has not risen in at least a decade, while the loan-to-GDP ratio is 31%, well below that reported by neighbours and peers. The Philippines is at 41%, Solomon Islands 38%, Thailand 151%, Vietnam 111% and Indonesia 39%. It is estimated that only 20% of people in PNG have...