Despite a number of ongoing challenges, Papua New Guinea’s banking sector is poised for expansion in the coming years. The industry has seen significant growth over the past decade, primarily as a result of government leadership and rapid development in the economy due to a handful of major energy and mining projects. In general, three commercial banks –the Bank of South Pacific (BSP), Australia and New Zealand Banking Group (ANZ) PNG and Westpac PNG – currently dominate the sector. As…
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 incorporate more people within the formal banking system, the government is expanding the National Development Bank, while the private sector is counting on mobile banking to reach rural inhabitants.
This chapter includes interviews with Loi M Bakani, Governor, Bank of Papua New Guinea; and a roundtable discussion with Vishnu Mohan, CEO (PNG), ANZ Banking Group; Ian Clyne, CEO, Bank South Pacific (BSP); and Ashleigh Matheson, Managing
Director, Westpac Bank (PNG).