On Thursday, April 10, 2025, Prime Minister Hon. James Marape officially launched Papua New Guinea's newest commercial bank, the National Banking Corporation (NBC), bringing the total number of commercial banks in the country to seven
NBC is the transition from the former People’s Micro Finance Bank, and is a subsidiary of the National Development Bank (NDB) – one of the nine State- owned enterprises of PNG.
The move into the commercial banking sector space is an effort by the Marape-Rosso Government for better financial inclusion covering areas of the country not reached by existing commercial banks, and is part of the extensive reforms of State enterprises currently being undertaken by Government.
A Cabinet decision made in 2022 finally saw the issue of a license by the Bank of PNG in December last year 2024 after a long rigorous process. The launch on Thursday night by the Prime Minister was held at APEC House in Port Moresby before an audience of Members of Parliament, bureaucrats, bankers, superfund reps, business owners, and company directors and managers.
Prime Minister Marape urged NBC to open branches in all 21 provinces including the Special Region of Bougainville within the next five years, while highlighting the need for all Papua New Guineans to easily access banking services because of their landowning status. Currently, the bank has 10 branches through its former status as the People’s Micro Finance Bank.
PM Marape highlighted the potential for the growth of NBC and commercial banks in PNG because of the expanding national economy, which has grown from K79 billion in 2019 to K125 billion in 2024 – the time under his administration– with an upward trajectory toward K200 billion at the turn of the decade.
He also affirmed the growth in the PNG economy by pointing to Bank South Pacific’s declaration of over K900 million profit last year 2024, demonstrating this upward trajectory.
The Prime Minister said despite many challenges including an inherited re- cessed economy and global COVID-19 pandemic under his government, three commercial banks have opened in the last six years – Tisa Bank, Credit Bank and, now, NBC.
“Thank you very much Bank of PNG for the sensitivity to the times we are living in and recognizing the need for the unbanked to be banked, as well as for the banking sector to be reformed.
“The Pangu-led Coalition Government is happy to witness a State-owned enterprise not holding back but partnering in our intention for reform and moving into the right space.
“This bank gives the opportunity to 80 percent of our people who remain on the fringes of our economy, yet are our country’s biggest assets as people who own land and have access to forestry, fisheries, agriculture and some of the richest cultures in the world – the goldmine of tourism. They must be brought into the formal economy,
“NBC must maintain the fiduciary requirement of a bank and at the same time be responsive to the needs of our people.
“I thank the National Banking Corporation board and management, and Kumul Consolidated Holdings for NBC. This is a wonderful gift to our people on the 50th Independence anniversary,” said Prime Minister Marape.
The Prime Minister called on NBC, NDB and KCH to manage the new commercial bank prudently and grow it for the benefit of all Papua New Guineans, and not to repeat the mistakes of the former PNG Banking Corporation.
