KATS is the heart of the new National Payments System that will move all Banks from a paper based interbank payments system to a fully electronic payments system. The Bank of PNG is providing the framework and infrastructure, i.e. the computer hardware, software and communications technology that will enable this.
KATS will enable banks in PNG to offer the same electronic services as banks overseas do. Over time, more and more payments will be made electronically using a variety of methods such as the Internet, debit and credit cards, and mobile phones. Increasingly, these transactions will settle in real time (instantaneously). KATS will improve the safety and efficiency of the Payments System in PNG.
No. The Bank of PNG is the central bank of Papua New Guinea and does not offer personal banking facilities to the general public. For that you would go to a commercial bank such as BSP, ANZ or Westpac.
The primary role of the Bank of PNG is to issue currency and to act as the banker and financial agent to the Government. It is also in charge of regulating banking and other financial services and manages the gold, foreign exchange and any other international reserves of Papua New Guinea.
No. As per the Bank of Papua New Guineas objectives, one of the objectives is to formulate and implement monetary policy with a view to achieving and maintaining price stability.
The Bank of Papua New Guinea introduced the Kina Facility Rate (KFR) in February 2001, as an official rate to indicate its stance of monetary policy. The KFR is a monthly rate and any changes to it should translate to market interest rates. Changes to the KFR are based on assessment of economic fundamentals in the economy.
The objective of Monetary Policy in Papua New Guinea is to achieve and maintain price stability. If achieved it will lead to;
- Confidence in the kina exchange rate and management of the economy;
- A foundation for stable fiscal operations of the Government;
- Certainty for private sector businesses to plan for long-term investment and development; and
- A stable macroeconomic environment conducive to economic growth
There are different reasons to why is sold. The Government in an attempt to promote Economic Growth & Price Stability through their Fiscal & Monetary Policies issue Government and Central Bank Bills.
- Fiscal Policy–refers to the government’s revenue collection & spending. When the revenue & spending are not equal at any one time, the government issues the Government Securities (Treasury Bills & Inscribed Stock) to raise funds to meet its short falls.
- Monetary Policy–refers to the Central Bank being the monetary authority controlling the supply of money targeting a rate of Interest. Central Bank Bills are issued in order to manage liquidity.
The Bank of PNG regulates financial institutions and savings & loan societies to protect depositors (You and I), to maintain financial system stability, to promote or create economic activity and growth. It sets strict standards that each of the financial institutions have to meet. BPNG then makes sure the standards are applied; BPNG then issues that financial institute a license.
No. Our Bank notes are printed in Australia, by a company called Note Printing Australia. Our coins are made in Canada by the Royal Canadian Mint.
An asset is said to be liquid if it is easy to sell or convert into cash without any loss in its value. By definition, bank notes and checking accounts are the most liquid assets.