The reforms included the financial sector, whereby structural reforms at the Bank of Papua New Guinea were considered necessary to achieve macroeconomic stability over the medium term. A new Central Banking Act (CBA 2000), which became effective on 16 June 2000, enhanced the independence of the Central Bank in the formulation and conduct of Monetary Policy.
A revised Banks and Financial Institutions Act (BFIA 2000) and the new Life Insurance and Superannuation Acts were also passed by Parliament in 2000, which enables the Central Bank to regulate and supervise these industries. The BFIA 2000 aims to broaden the scope and improve the effectiveness of financial sector regulation, drawing on international best practices.