Tisa welcomes Govt’s decision to amend Central Banking Act

Business

TEACHERS Savings and Loans Society Ltd (Tisa) has welcomed the Government’s decision to amend the Central Banking Act 2000 (Act) to address governance, accountability and transparency and objectives of the Bank of PNG (Central Bank).
“We commend the Minister for Treasury Ian Ling-Stuckey, for moving swiftly with these changes, including establishing an independent advisory group to conduct the review and amending the Act,” group chief executive officer Michael Koisen said.
“The IAG’s submission of its phase one report and recommendations in a very short period of time is highly commendable.”
Koisen said the decision was timely as the last reform to the act was done 20 years ago.
“We support the Government’s vision of a Central Bank of Papua New Guinea that is both independent and accountable, whose discretion is limited by law, and whose objectives are aligned to its functions.”
Koisen said the amendments were necessary to improve the Central Bank’s coordination of monetary policy and micro/macro prudential policies.
“As a premier state institution, the Central Bank’s transparency and accountability should help improve its credibility and further strengthen its ability to effectively pursue its mandate for the advantage of the people of PNG.”
Koisen said the challenge was now for the Central Bank’s executive management to institutionalise the changes and ensure it affected a culture of accountability and transparency.
“The institutional change should also encompass and pursue strengthening the capability of the Central Bank to better manage the changing landscape of the banking and financial sector.”
He said Tisa looked forward to the next phase of the IAG’s review and remained committed to supporting the Government and Central Bank’s agenda of promoting the development and growth of the country’s banking and financial sector.