My perception is that pricing, and thus competition, between large and smaller banks today is relatively little influenced by regulatory capital constraints because banks are operating far above regulatory minimum levels, or because economic capital and not regulatory capital is the binding constraint, or because banks are capable of easily selling or securitizing the exposure, as is the case with the majority of residential mortgage loans.
4.0  Legislation  There is no separate legislation for the microfinance industry and only two deposit taking microfinance institutions are licensed by the Bank of Papua New Guinea under the Banks and Financial Institutions Act 2000 in the same fashion as commercial banks and financial companies.