Table of Contents
PNG’s banking system
The PNG banking system is comprised of the Central Bank and various commercial banks.
The Central Bank was established under the Central Banking Act. Its objectives are to:
- formulate monetary policy for price stability;
- formulate financial regulation and prudential standards for stability of the financial system;
- promote a national and international payments system;
- promote macro-economic stability and economic growth in PNG.
The Central Bank’s functions include:
- issuing currency;
- acting as banker to the Government;
- regulating banking, credit and other financial services;
- managing gold and foreign exchange.
The Bank of South Pacific is the largest bank in PNG with 35 branches throughout the country. It also has branches in Fiji, the Solomon Islands, Samoa, Tonga and the Cook Islands.
Australia and New Zealand Banking Group Limited established a subsidiary in PNG in 1976 known as Australia and New Zealand Banking Group (PNG) Limited. However, ANZ has had branches in PNG since
1910. There are 12 branches located throughout the country.
Westpac Bank-PNG-Limited operates in PNG as a subsidiary of Westpac Banking Corporation.
Westpac has been providing banking services in PNG since 1910. Today it has 16 branches across the country.
Kina Bank is PNG’s fourth commercial bank after recently completing the acquisition of Maybank’s PNG business operation.
Port Moresby Stock Exchange Limited (POMSoX)
The Port Moresby Stock Exchange Limited (POMSoX) was established and registered as an organisation under the Companies Act. It was granted a license to operate a stock market under the Securities Act.
The PNG Securities Commission (Securities Commission), a subsidiary of the IPA, monitors and regulates the POMSoX, including by monitoring trades and approving listing and business rules.
Buying and selling on POMSoX
There are currently 19 companies listed on POMSoX, a large number of which have been admitted as ‘exempt foreign entities’. Companies admitted as exempt foreign entities are generally subject to minimal
continuing obligations under the POMSoX Listing Rules.
Stocks listed on the POMSoX can only be purchased or sold via a broker. Currently, there are only two licensed stockbrokers – BSP Capital and Kina Securities.