The Autonomous Bougainville Government (ABG) has advanced discussions with the National Government on the transfer of financial sector regulatory powers.
ABG Minister for Treasury and Finance Albert Punghau met with National Treasurer Ian Ling-Stuckey and senior officials from the National Department of Treasury to present a framework for the drawdown of regulatory oversight of Non-Banking Financial Institutions (NBFIs), as well as the establishment of a regulatory presence of the Bank of Papua New Guinea (BPNG) in Bougainville.
“This partnership with the National Government represents a practical pathway to strengthening Bougainville’s financial system while maintaining regulatory coherence,” Punghau said.
“Non-banking financial institutions play a critical role in delivering financial services to our communities, supporting small businesses, and formalising the informal sector. By working collaboratively with our national counterparts, we can ensure these institutions operate effectively under proper oversight.”
NBFIs — including savings and loan societies, microfinance institutions, and other financial service providers — are central to Bougainville’s economic development. They enhance financial inclusion by reaching communities and businesses not fully served by traditional banks, while supporting private sector growth and broadening the local revenue base.
The ABG proposal seeks to assume regulatory oversight of NBFIs under Section 290 of the National Constitution, which provides for the transfer of specific powers to the Autonomous Bougainville Government. This process is supported by the Sharp Agreement 2021, which streamlines arrangements for ABG to exercise meaningful control over devolved functions.
To ensure effective and credible oversight, ABG has proposed the establishment of three functional BPNG regulatory units in Bougainville:
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Banks and Finance Companies
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Savings and Loan Societies
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Microfinance
As an interim arrangement, the proposed units would be housed within the ABG Department of Treasury and Finance under the Policy Development and Analysis Directorate. This approach ensures regulatory supervision and consumer protection are in place alongside the transfer of powers.
ABG has further proposed the development of a Memorandum of Understanding (MoU) with the National Department of Treasury by February or March 2026, followed by a technical MoU with BPNG by July 2026. National Treasury officials welcomed the proposal, noting that the framework provides a concrete basis for continued engagement and technical collaboration with ABG.
The initiative aligns with the Toroama–Masatt Government’s commitment to building a strong and sustainable economic foundation for Bougainville ahead of the planned September 2027 independence transition.
Through a phased and cooperative approach, ABG continues to demonstrate its readiness to assume greater responsibility while maintaining a strong partnership with the National Government.
The meeting was attended by Secretary for Treasury Andrew Oaeke; Deputy Secretary for Budget and Financial Management Napa Hurim; Assistant Secretary for Provincial Budgets Amos Ropkil; and Principal Advisor to the Treasurer, Professor Misty Baloiloi.
