Financial Services

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Chapter | Banking. from The Report: Papua New Guinea 2012

PNG’s banking sector is dominated by three major players: BSP, ANZ and Westpac. The challenges they face are familiar to emerging markets, including limited capital, riskier commercial loans and a largely unbanked population. The current issue is an excess of liquidity, as banks have accumulated plenty of cash through a build-up of foreign exchange reserves, yet are hesitant to lend it out. To...

With solid fundamental growth, companies in Jordan’s insurance sector are currently focusing on improving technical profits and boosting penetration rates. As the 28 insurance providers compete to increase market share, customers are also benefitting from low premiums and high quality provision of services.

What are the most promising growth segments for the kingdom’s insurance industry?

With increasing demand in a number of segments, the insurance sector has some positive momentum and favourable growth prospects over the medium term. Still, rising claims and costs have been squeezing profits. With 28 providers and no clear market leader competition is fierce in a smaller market of 6m people.

Do capital markets authorities need to give investors a broader range of investment tools and products to create greater depth within the exchange?

With little room for expansion in the public sector, Jordan will depend on the private sector to drive growth in the coming years. Key to this will be enabling businesses to access finance at affordable rates. Although the conventional banking sector is often criticised for not providing enough financing to small and medium-sized enterprises (SMEs...

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