Banking sector lacks competition

*Govt wants NDB to become a commercial bank: Pruaitch
By TRAVERTZ MABONE
UNHAPPY with the current structure of the country’s financial market, the Government said it wanted to see the sector open up for more competition.
This was made known by Minister for Treasury and Finance Patrick Pruaitch at the presentation of the National Development Banks’ annual reports last Monday.
Mr Pruaitch said he was very pleased to receive the annual reports for 2002-2008 from the NDB.
He said: “It is a very significant milestone in the progress the bank has made from insolvency and the chaotic state of affairs of the bank in 2004.”
Mr Pruaitch said as minister responsible for NDB, he would be seeking support from the Government to provide NDB with capital to develop a microbank, and then up-scale to a full-fledged commercial bank.
He said the Government wanted to see the financial sector open up for more competition.
Mr Pruaitch also disclosed the Government’s commitment to funding NDB in next year’s budget as a lead agency in helping the Government empower Papua New Guineans to generate wealth along its “wealth creation pillar” set under the national strategic plan for 2010-50.
“With the emergence of new technology including branchless banking, I am confident if rightly supported, NDB can really be our bank like PNG Banking Corp used to be.”
Lauding the NDB board and management, Mr Pruaitch noted their time-consuming, skillful and arduous efforts to resurrect the bank.
Earlier, NDB said it was seeking a licence from the Government to be able to operate a microbank.
Managing director Richard Maru said under this set up, they would be able to provide savings accounts and various other banking services to ordinary Papua New Guineans. 16 July 2009