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The Independent Advisory Group's examination of the 2000 Central Banking Act was recently welcomed by Treasurer Ian Ling-Stuckey.
On October 25, the first phase report was finished and posted on the Bank of PNG's website.
Learning from experience, increasing Bank independence, delivering accountability, limiting discretion, and connecting objectives with functions are some of the themes highlighted in the paper.
In a statement, Treasurer Ling-Stuckey said: “I support entirely the view expressed by the Chair of the IAG that the review presents an ‘opportunity to strengthen the Bank of Papua New Guinea.
“This is very much in line with the terms of reference provided to the Review on 13 May where the Government sought to modernise this key economic institution of the country.
“This is an excellent document. It is available on the web and I encourage those seriously interested in advancing our country’s economy to go through the detailed, thorough, objective analysis in the report’s 132 pages.
“I thank the members of the IAG; the Chair Robert Igara, as well as Sir Wilson Kamit and Professor Stephen Howes for the long hours they have put into producing such a fine report.
“The report has 31 recommendations from its first phase.
“It also sets out important issues for review in the second phase of the IAG’s work focused on the regulation of the financial, superannuation and insurance sectors, the application of Anti-Money Laundering and Counter-Terrorism Financing rules, BPNG’s financial management and performance, the shortage of cash in 2021, and improved data communication.
“I agree strongly with the view by the IAG that reforms are now needed, and could have the same transformational impact as the initial reforms 20 years ago.
“In going through the report, the immediate focus will be on governance reforms. PNG has been left behind by almost all other countries. We are one of only four countries in the world that focuses all power over monetary policy in one person – we need a more collegiate approach.
“We need to correct demonstrated areas of under-performance. This will include moves to strengthen the Central Bank Board.
“I will be looking at introducing the highest priority reforms during the coming sitting of Parliament, with further reforms following the second phase of the report,” stated the Treasurer.
The Treasurer also thanked Secretariat members for their support of the review, which included the IMF's comprehensive remarks.
“I thank all the financial institutions and business organisations that have also participated in the review.”
Reference: Loop (15 November 2021). “Treasurer welcomes banking act review”.
