Banking

Banking in PNG is mostly limited to retail banking and financing .

PwC is locally and internationally recognised for its expertise in the banking sector.

In PNG, the banking sector is regulated by the Bank of PNG. The recent central Bank Act 2000 and Bank and Financial Institutions Act 2000 has brought the regulatory framework in line with international standards.

The banking sector is dominated by the state owned Papua New Guinea Banking Corporation (PNGBC), locally owned Bank of South Pacific and Australian owned, Westpac and ANZ. There are also a number of smaller banks and financial institutions. All of the major banks provide retail banking services and finance in the main centres in the country, with PNGBC having an extensive branch network in rural areas. PNGBC has been earmarked for privatisation. It is likely that the privatisation will lead to a major restructuring of the banking sector.

Total finance provided by banks in 2000 amounted to K1,761milion while deposits accepted by commercial banks amounted to K2,775million. The apparent difference indicates the high level of investments in short term government securities.