NDB plans nationwide micro banks

Business, Normal

The National, Friday 24th August 2012

THE National Development Bank (NDB) will launch new micro banks across the country to provide financial services to the rural people.
It is expected to launch its new financial institution called the Micro Banks early next year.
Right now, it is working to secure a licence from the Bank of Papua New Guinea (BPNG).
The new bank will be a fully-owned subsidiary of NDB and will operate independently as a commercial and financial institution registered under the Companies Act.
NDB has been granted K20 million funding by the national government to form the Micro Banks in its branches throughout the country.
NDB’s acting managing director Moses Liu told The National that the new banks will operate using the NDB branch networks.
It will provide much-needed banking and financial services to the bulk of the rural people who do not have access to such services such loans and other financial services.
He said the new micro banks will operate as normal banks.
The micro banks will ensure that the grassroots get access to banking services at affordable costs, according to Liu.
“It all depends on NDB meeting all the requirements for a licence … but these should be sorted out before the end of this year,” he said.
NDB will invest funds or equity in the new banks for its operations.
Liu said the mirco banks will pay dividends to NDB from their earnings.