Acquisition of Wespac will boost local investment: Bank

THE Kina Bank views the acquisition of Westpac’s Pacific business as an opportunity to boost local investment and reaffirm PNG as the largest economy in the Pacific.
The bank’s executive general manager for banking Lesieli Taviri said while the acquisition was subject to the regulatory authority’s approval and support, it would be a great outcome for PNG.
Taviri said during the Prime Minister’s back to business breakfast that the bank had a bold ambition to create the “bank of the future” for the country.
“We see this as an exciting opportunity to create something really special for banking and financial services in PNG and the broader Pacific,” she said.
“Importantly, it provides a scale financial services organisation, more investment, and a firm strategic commitment to banking in the region – something that we think has been sadly missing.
“There’s been some talk that this acquisition would affect market concentration and create a duopoly – or create another financial services business that’s too dominant. This simply isn’t true.”
Taviri said after the proposed acquisition, the market share of the combined businesses of Kina Bank and Westpac PNG would be less than 20 per cent.
“Our proposal is another first for PNG – to take a multi-brand approach that will improve competition; improve customer choice; and continue to disrupt the banking sector in this country in a positive way,’ she said.
“Our intention is to create a completely new brand for the acquired business and to maintain the independent commercial banking licence of Westpac PNG.
“It is worth nothing that there are four commercial banking licenses in PNG, and numerous micro banks and savings and loan societies operating in this country.”
She said the Bank of PNG could grant additional commercial banking licenses to domestic or international institutions.