According to Nasfund Contributors Savings and Loans (NCSL) Chairman Ian Tarutia, banking is its next step.
He said that he is currently gathering requirements to see how they could venture into that next step, adding that Papua New Guinea had only four commercial banks providing opportunities for other operators.
“We have actually engaged a feasibility study and we are doing that now,” Tarutia said. “This is to help guide us to see the steps that will be taken and what it would be like if we are going to go into that banking arena because there are a number of things that you need to fulfill as requirements. Things like adequate capital base, infrastructure spread and all requirements that go with a bank. So once we get to that stage, we will have a clearer picture but in terms of the intent, we believe we can do more than what the savings and loans legislation is allowing us to do. Hence our push to get into that arena.”
He added, “We have got membership growth and our governance overlay and just the infrastructure that we have at the moment is helping us get there so step by step. At this point in time, we need to have a clear indication of what we need to do to help us get into the banking sector.”
Tarutia remarked that no loan and savings society had not acquired a banking license yet and NCSL was looking for ways to make this grow.
“We can take a specific step or targeted approach or we can be a bank for all and provide everything and these are the questions that we have asked ourselves and we are getting answers by engaging outside expertise and possibly by 2021, we will have an indication of where to go,” he said.
