Financial Services

Confidence among players in Papua New Guinea’s (PNG’s) banking industry and the launch of new microfinance and mobile banking initiatives highlight the sector’s potential to grow amid the country’s natural resource-based surging growth. However, the Bank of PNG (BPNG), the central bank, remains concerned about increasing levels of liquidity.

Malaysia’s capital markets are in line for a boost, as the introduction of private pension funds is expected to create a significant funding inflow that will be directed towards various investment vehicles. This should also serve to take some of the pressure off the state’s retirement schemes.

Looking to build on recent successes, Bahrain’s insurance sector is reaching out to potential clients through greater use of tools such as bancassurance. The sector is also hoping plans for increased infrastructure spending will boost the call for coverage for the construction and industrial sectors.

Interest in Dubai’s bond market is undergoing a revival, with enthusiasm tracking the steady rebound of the emirate’s economy. There are still some lingering concerns, however, over whether all bonds can be repaid on time or if another round of rescheduling will be required.

The outlook for Kuwait’s banking system over the next 12-18 months remains stable, according to a recent report by Moody’s Investors Services. Asset quality has improved markedly since the days of the global financial crisis, and lenders are well capitalised. However, the country’s lenders face other challenges, most notably a sluggish economy that has left demand for loans – particularly on the corporate side – limited.