Credit quality, supervision and capital A growing number of firms are having difficulty repaying their loans: in the third quarter of 2012 the ratio of new bad debts to the stock of outstanding loans was 2.2 per cent for bank customers as a whole, while for firms it was 3.3 per cent.
The Bank of PNG has a Board that ensures that the Governor and management perform in fulfilling the duties so prescribed as well as strive to make profits and declare dividends to its shareholder. I am pleased to announce that the Central Bank has a very dynamic and vigilant Board, which ensures that the Bank’s policies and operations are prudent and sound.