Cabinet agrees to set up commercial bank

CABINET has agreed in principle to set up a commercial bank to be called the National Banking Corporation, says State Enterprises Minister William Duma.
He told Parliament it should be opened late next year.
“(The) Government has made a decision to apply for and establish another commercial bank in the country,” Duma said. “If we take other smaller countries like Fiji, they have more commercial banks operating there. And in a country of more than 10million people, (we) need more banks.”
He said when the ANZ Bank and Westpac were downsizing their operations, “it is incumbent on all of us to establish another bank, if we see that the existing banks are not providing the services our people need”.
“Many of our people are unbanked. And because of the conduct of some banks that are charging fees after fees, it is incumbent upon a responsible government to set up another bank,” Duma said.
“Cabinet has approved in principle for a new commercial bank to be established called the National Banking Corporation. We are now 85 per cent through.
“Before the end of next year, (we) should have another commercial bank which will hopefully deal with some of the concerns we have been raising.”
The four commercial banks operating now are BSP Financial Group Ltd, Kina Bank, Westpac and ANZ Bank.