Photo credit: PNG PM Media
Prime Minister James Marape stated that the country has room for one or two more banks.
Marape said the Government was looking at the Bendigo bank model where firms may operate under a franchise when introducing the PNG Think Tank's online crowdfunding concept last week to gather funds to establish a PNG small-to-medium enterprise (SME) bank.
PNG Think Tank's crowdfunding campaign has already garnered over K30 million in pledges as a first step toward entering the banking industry.
“This idea is not bad and there is space for one more or two more banks in our country,” Marape said.
“For us, a nation of some nine million people, the volume and turnover as far as business is concerned has a need for more banks and the concept of crowdfunding for a bank that is owned by Papua New Guineans is not out of place in the present economic and banking needs.
“It is a step in the right direction.
“Whatever you want to do, so long as you do it correctly and the platform is equal to anyone who wants to participate and should they have a share in this business venture, open it up, everyone gets involved and mobilise your funding.
“As far as public policy is concerned, for a seed capital, the Government can step in if the intention is honest.
“There is also a concept that we are looking at called the ‘Bendigo’ concept in Australia where you have one licence but you have franchises who are operating and this can be an alternative.
“Our Government is in the business of trying our best at retaining money in country.
“All Forex (foreign exchange) we mobilise come in and we try to retain the money and capital that doesn't go outside and that includes owning banks that has addresses in our country.”
The head of the PNG Think Tank group, Samson Komati, said there was a large gap in the banking industry, which was currently dominated by commercial and micro banks.
According to Komati, there are no banks for agriculture, logging, fisheries, SMEs, and other industries, thus the SME bank was created to fill a need and reach out to the unbanked.
Reference: The National (9 November 2021). “Space for more banks: PM”.
