PNG seeks United States assistance to set better banking regulations

Key points

• PNG banking regulations not delivering expected services
• United States willing to help PNG 
• PNG must work with  international partners to lighten the burden as a result of unintended consequences of global regulations

Papua New Guinea Minister for Treasury Ian Ling-Stuckey met with the United States Treasury Deputy Assistant Secretary Robert Kaproth in Korea discussing challenges around establishing better banking regulations and servicing the people.

PNG Treasurer Ian Ling-Stuckey MP meets the United States Treasury Team

“PNG’s banking regulations are not delivering good enough services for our people. Too many of our people are left unbanked, and those in the banking system face high costs and often poor services," Ling-Stuckey said in a statement following the meet with Kaproth.

Ling-Stuckey believes the United States can be a valuable friend as the country examines best global regulations.

He identified legacy issues like  many of our people are left unbanked, and those in the banking system face high costs and often poor services  are being rendered. 

Ling-Stuckey said part of the problem is domestic, where businesses keep telling him of excessive red tape. 

But he said the Marape-Rosso Government has targeted improved banking regulation as the key part of the second phase of recommended reforms to the Central Bank Act being examined by the Independent Advisory Group. 

He said part of the problem comes from international factors.

"Like other countries in the Pacific and Caribbean, are suffering the unintended consequences of well-meaning global regulation dealing with anti-money laundering and counter-terrorist financing. 

"As highlighted through my Chairing of the Pacific Governors Group at the recent Asian Development Bank annual meeting, we are asking for a stronger Pacific voice in the negotiation of international financial rules," Ling-Stuckey said in a statement.

The treasurer has outlined several issues to the US  Treasury Deputy Assistant Secretary and he was sympathetic to the PNG issues.

“I outlined the challenges PNG were facing in response to these global rules. 

"Government cheques were regularly being bounced. At the district level, it was taking upwards of five months to clear a government cheque, even though it was paid from one government body to another government body. 

"Farmers were not able to bank the Kina they earned when selling their harvest, as often they could not prove their “source of funds”. 

“We must work with our international partners to lighten the burden on our families and farmers of the unintended consequences of global regulation,”  Ling-Stuckey said.

“I was pleased that the US offered to send a team to examine possible technical assistance to move back to a proper “risk-based” approach to our financial regulations. PNG needs some constructive advice, and it will help inform decision-makers in the US of how some global regulations are hampering our development. 

The Treasurer sad PNG has no economic crisis as PNG has record levels of foreign exchange reserves and a very healthy trade surplus. 

He said  the IMF program would build international confidence in backing the Marape-Rosso government's home-grown economic reforms. 

Ling-Stuckey said the historic visit by the US President Joe Biden on May 22, 2023 would have a positive impact on PNG and the Pacific with further discussions to continue on how PNG can also gain greater access to US grant funding programs.