BPNG plans on reducing bank fees

By ELIZABETH VUVU
THE Bank of Papua New Guinea (BPNG) plans to issue licences to financial institutions to provide competition as a way to address hefty fees being imposed by commercial banks and financial institutions, an official says.
The central bank’s lead coordinator financial services sector, Augustine Birie, said this at the financial services review project workshop in Kokopo, East New Britain.
The project was undertaken by the Government since 2014 to review ways on how financial systems were operating in Papua New Guinea.
Bire said this was the fifth workshop conducted, with Southern and Mamase region completed.
It aimed to take on board views from stakeholders to formulate the financial services sector development strategy by the end of next month be submitted to the finance minister and National Executive Council for approval.
Bire said the issue of competition was raised in Kokopo so people could have a choice which institution they banked with. Birie said people faced hefty fees imposed by commercial banks and financial institutions. Money schemes was also an issue they would take into account.
“This will be addressed through consumer protection and we will provide competition by giving licenses to many institutions to provide competition so fees can come down,” he said.
Other areas under review included government securities and bond equities market which was how Port Moresby Stock Exchange operates and how government issues securities to raise funds at the domestic market.
“The payment system currently in PNG is strong,” he said.
“We do not use and card, but still carry around cash and we are looking at how we will strengthen and put in place a secure and efficient system in the rural areas.
“With the law and order problems in country, it is not safe to carry cash around.”
The one-day workshop was attended by financial institutions in East New Britain.
with good turnout by farmers and cooperatives.