Papua New Guinea’s banking sector is adjusting to the slowing of economic growth and to the foreign exchange shortage that is affecting local businesses in the country. However, despite many challenges, the institutions remain well capitalised and highly profitable, and in some cases are maintaining positive profit growth. But more than just...
What opportunities currently exist for expanding Papua New Guinea’s banking industry into other countries in the Asia-Pacific region?
The current economic slowdown highlights several opportunities to prioritise and improve processes and procedures within the PNG financial sector. We have access to the technology and tools that can increase efficiency in fundraising and in operating the financial sector. PNG as a country has never defaulted in its history, so it has a sound...
Historically, Papua New Guinea’s banking sector has been one of the most profitable in the world in terms of return on equity and interest rate spreads. In 2015 the gap between borrowing and lending rates was reported at 8.3%, down slightly from 9% in 2014, but higher than in most of its neighbours – Indonesia was at 4.3%, Malaysia at 1.5%,...
Financial institutions are making small but significant moves that are helping the sector to evolve incrementally. To a great extent, the changes revolve around branch expansion and the reach within the community. Westpac Bank currently has 16 branches around the country, while the Australia and New Zealand Banking Group (ANZ) has 12. Bank...
The government of Papua New Guinea has rolled out a new plan to support small and medium-sized enterprises (SMEs) by improving access to finance and training. Unveiled in February 2016, the SME Policy and Master Plan 2016-30 sets out objectives to expand the economy and create employment outside of the main population and trade hubs. The...
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