Government keen to develop capital market

THE Government is determined to develop the country’s capital markets, Deputy Prime Minister and Treasurer Charles Abel says.
Abel said the first step had already been done with the oversight of the Securities Commission being transferred to the Ministry of Treasury.
“This move, together with the new legal framework, has helped to strengthen the capacity of the commission to oversee and regulate the market,” he said.
Abel said this during launching of the Financial Sector Development Strategy 2018-30 and National Financial Inclusion Policy in Port Moresby on Friday.
“We expect this will help deepen trading in bond and equity markets, and ensure the ongoing evolution of a robust and dynamic stock exchange,” he said.
“We are growing and learning, with a struggling stock market.
“Since the Port Moresby stock exchange was introduced, we have challenges in regulating the industry.
“Our securities commission has to be brought into the umbrella and must coordinate the different aspects on the insurance side of it, the capital market, stock exchange.
“Then the Central Bank comes in and regulates all together with better infrastructure platforms and availability of new technology like blockchain and application of the use of mobile phones.
“Clearly, we cannot do everything at once.
“That has been adopted as an initial focus on the next three years to 2021.” Abel said this ensured that necessary reforms were enacted, consistent with the Government’s Medium Term Fiscal Strategy, National Planning Framework, Vision 2050, StaRs and the Medium Term Development Plan.
“Co-ordination and collaboration amongst our financial sector policy and regulatory agencies is also critical,” he said.
Abel said a newly-established Financial Services Council (FSC) had been established to help with this coordination role, as well as to provide oversight on implementation of the strategy.
“The FSC comprises the governor of Bank of PNG, the secretary of Treasury, the chair of the
Securities Commission, and the insurance commissioner,” he said.