These licencing requirements are essential to enable the entry into the financial system of Papua New Guinea of the serious, the committed and the resilient development parties who are prepared to continue to invest and expand in Papua New Guinea. These licencing requirements are essential to “keep out” the inept and inept practices that will threaten the soundness of the banking and financial system.
Our own experiences of the lost decade “the 1990’s” attests to this stance. Under the reforms, the Bank of PNG had to shut down a major bank, liquidate 86 savings and loan societies and oversee a number of financial institutions manage and trade themselves back into business.