In all the large superannuation funds, total ignorance and incompetence of management, board and ministerial control on the decision making process, resulted in serious failures. There was lack of confidence in the financial system and the economic management of the country, which also contributed to the depreciation of the kina.
Many in the industry still expect provisioning to increase over the course of 2005, although that did not happen in the first quarter. At this point, it appears that such increases will primarily reflect growth in loan portfolios because asset quality has not yet shown signs of impending deterioration.