Rather, we have to continue to maintain vigilance in ensuring appropriate policies and actions are pursued so that we can continue to gain on these hard won achievements. An effective monetary policy requires a sound financial system. The Central Bank ensures this through its supervisory function. I will now discuss this second major function of the Central Bank.
Supervision of the financial system At the Bank of PNG, following the passing of several legislations (CBA 2000, BFIA 2000, Life insurance and Superannuation Acts) our responsibility now covers the supervision of almost the whole financial system in the country.