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The revision of the Central Banking Act, according to Treasurer Ian Ling-Stuckey, would address the shortage of foreign exchange and competition in the banking business.
The public comment phase, he added, will begin in the next two weeks.
“The independent advisory group for the review of the Central Banking Act 2000 is making good progress on how we can make BPNG and monetary policy work better for the people,” he said.
“I encourage people to look at the issues paper and consider the important issues raised.
“Public submissions are now coming in.”
He said the review was vital.
“The current legislation needs to be modernised,” he said.
“Why is there still not enough competition in our banking sector?
“The gap between what banks pay to depositors and charge to lenders is too high.
“Too many of our people still do not have access to banking services.
“Too many of our SMEs find it too hard to get loans.
“The review is considering if we can do things better while maintaining the bank’s independence.
“The lack of foreign exchange is the worst business problem in PNG, bigger than law and order, or lack of skilled labour, or bad infrastructure, according to businesses in the annual CEO survey.
“Why is our kina now so difficult to convert to other currencies when it wasn’t an issue 10 years ago?”
People were told that the PNG LNG project would prevent such problems, he added.
Reference: The National (24 September 2021). “Review will address forex woes, competition: Treasurer”.
