Savings and Loans Act good for competition, says official


THE Savings and Loans Act which came into effect last October is expected to create competition in the savings and loans industry, an official says.
“There will be a lot of competition between savings and loans societies which is a good thing,” said chief executive officer of the Teachers Savings and Loans Society (TISA) Michael Koisen.
“At the end of the day it is the member or the customer that will benefit from the competition.”
Koisen said it would create a level playing field for savings and loans society and financial institutions.
He said the industry would see a decrease in the number of savings and loans societies but would see a growth in the active societies.
Koisen said under the new law, there had been discussions between the savings and loans companies to merge and take advantage of the combined balance sheets.
He said another advantage was the removal of the common bond which would no longer restrict savings and loans societies to one particular industry.
“It will be completely open to all Papua New Guineans both in the informal sector and the formal sector.”
In line with the new laws, the TISA plans to open membership to private sector employees.