Category Archives: Calendar Events

Papua New Guinea will be celebrating 49 years of its Independence on the 16th of September, 2024.

BSP Supervisory College
Apia, Samoa
2 August 2024

Closing Remarks by Ms Elizabeth Genia AAICD, Governor,
Bank of Papua New Guinea

Good evening. I am honoured to be here, representing the Bank of Papua New Guinea at what we could call “the closing ceremony of the 9^th Pacific Island Nations’ Central Bank BSP supervisory college”.

Unlike the other major international event that’s currently being staged, I think you’ll agree that the word “games” does not describe what we have all been involved in over the past two, very full, days.

However, if we think about the dedication, training, skills development, single-minded drive, commitment, and sheer grit and determination required to achieve a meaningful goal, then we can draw some strong comparisons between the Olympics and this BSP supervisory college.

I personally acknowledge and thank the Governor of the Central Bank of Samoa, Ms Maiava Atalina Ainuu-Enari and the CBS staff for your kind hospitality, your help with setting up the arrangements, and, very importantly, your valuable contribution to the discussions. I also acknowledge and thank our colleagues from the Reserve Bank of Fiji, the Central Bank of Solomon Islands, the National Reserve Bank of Tonga, the Reserve Bank of Vanuatu, the Financial Supervisory Commission of the Cook Islands, and the team from the Bank of Papua New Guinea.

“Team” is the operative word here. Unlike the other event, the real power of the supervisory college structure is the fact that we are not just representing our individual nations’ central banks. We are all here to work together collaboratively, not competitively.

And that goes for the commercial bank that is the subject of the college. This team of Pacific Islands central bankers are not flat out trying to get a ‘better score’ than BSP. Bottom line is we want BSP to do well and be a successful and profitable business, within the legal guidelines that apply to banks.

Our team objective to achieve the gold medal performance is to assist BSP to meet their obligations and operate their business with fairness to their customers and in compliance with the various regulatory requirements of the different jurisdictions our team represents.

Collaboration and communication are the keys to the success. In this context, I am delighted that the official part of the supervisory college concluded this afternoon with a very good discussion with BSP Group’s CEO Mark T. Robinson and his senior management team.

Let’s take a moment to reflect on what the future of commercial banks in the Pacific region is likely to be and what that will mean for us as regulators.

Australian-based commercial banks are moving out of the retail sector in the region, or are taking their operations away completely, in line with changes to their business models and focus on ‘de-risking’. The concern here is that competition becomes more limited in our markets, potentially reducing the amount of choice customers have access to.

We all certainly need to keep a close eye if contraction in the market becomes an issue. In PNG we are actively encouraging new entrants to the banking services market. To a significant extent, new entrants are not necessarily retail banks. Here again, as regulators we need to keep a close eye on making sure that non-traditional financial services providers comply with the required rules.

Turning back to BSP, since this supervisory college has been their special event.

As other market participants leave the arena, we can expect to see BSP’s regional aspirations and opportunity for continued growth to enable it to become a Systemically Important Financial Institution, which gives rise to a whole other set of responsibilities from a central bank perspective.

Obviously we need our regional banks like BSP to provide banking facilities to our rural and small Islands communities, where most of our populations live. We need these organisations to continue to provide banking services to our SMEs and farmers. And we need to remember that these are the markets that represent most of the risks to a commercial bank.

We all certainly need to keep a close eye on these situations. As regulators, we must ensure that our regional banks are adequately capitalised. We need to keep them up to the mark with best practice governance, employment and risk management standards, so they are able to absorb risks, and can continue to provide banking services to this tricky market.

I am firmly of the view that the supervisory college approach is a very effective tool when it comes to conducting regulatory supervision.

BSP is a good example. Through supervisory college collaboration and communication between the region’s central banks, and working closely with BSP as well, we can identify systemic concerns, such as cross-border risks and vulnerabilities, and address them.

We can work together to strengthen our jurisdiction frameworks and our regional risk management to mitigate the potential for financial crisis in our region.

For example, if together we develop risk-management measures such as prudential policies and tools, we are all in a better position to identify and mitigate the build-up of systemic risks. 

And binding the processes all together, the supervisory college structure provides a very effective ongoing opportunity to share information and cooperate on issues as they develop.

On that note of ongoing teamwork, I feel like I’m standing on the podium, with the opportunity of thanking you all for making this supervisory college a gold medal performance.

Thank you again Governor Ainuu-Enari for accepting our invitation to co-host this event in Apia.

Sincere thanks to Ms Tapusina Aselele, the Manager of CBS’ Financial Supervision and Regulatory Department and her staff, for assisting the BPNG staff to organise this event.

Unlike at the ‘other event’ where there is only one winner in most activities, right here at the 9^th Supervisory College everyone who has been involved has had a win. In fact, several wins.

Increased knowledge and new ideas for encouraging compliance, through sharing information and networking we have participated in.

Better understanding of the aspirations and challenges of other countries in our neighbourhood.

And appreciation for the similarities we find within our cultures. And respect for our cultural differences. 

Thank you All.

I look forward to continuing the strong collaboration and communication channels we have opened this week, when we return to our desks.

In the meantime, safe travels.

KINA AND TOEA DAY EXHIBITION

NATIONAL MUSEUM & ART GALLERY
FRIDAY 17th MAY 2024
2:00 PM – 5:00 PM

Official Opening – Kerema Branch, Mama Bank

7 May 2024

Elizabeth Genia AAICD

Governor, Bank of Papua New Guinea

 

Acknowledgements

Prime Minister Hon James Marape

Vice Minister Mining and Member for Kerema Hon Thomas Opa

Members of the Provincial Assembly and Ward Members

Officials and People of Kerema and Gulf

Good afternoon – Meapot lareva, or Meuri lareva

I was not only delighted to receive Vice Minister Opa’s invitation to take part in the official opening of the Women’s Micro Bank branch, here in Kerema Town, but was also excited to come to Kerema Town & Gulf Province for the first time.

 My mother was part Orokolo and part Abau and today I stand before you also as a proud Orokolo and a Gulf woman. My grandfather’s name was Maimai Mahero from Pokavavu or Hopaiku village in Orokolo.

The fact of the matter is that I grew up in my grandfather’s rubber block in Cape Rodney. Today, I am grateful to Governor for Gulf Hon. Chris Haiveta and my cousin brother Tony Ila a former member of parliament and a Pangu Party stalwart who have made sure we maintained our Orokolo and Gulf links and heritage.  

As Governor of the Bank of Papua New Guinea, I see reports about developments and achievements in the financial sector. But being able to see and experience personally just how those developments and achievements are making a real difference to our nation makes those reports come alive. So thank you for giving me that opportunity.

Today’s official opening of its fifth branch celebrates another achievement in a long line of achievements we have seen from Women’s Micro Bank.

I am sure your highly esteemed founder, the late Janet Sape, would have been extremely proud of the organisation affectionately-known as Mama Bank – now one of the top 50 companies for women in APEC countries, and well-regarded as a financial services innovator.

Ten years ago, almost to the day, Women’s Micro Bank received its micro banking business licence from BPNG, the fourth micro bank to be licensed, and the first women-focused micro bank in PNG and the Pacific region.

Since then, Mama Bank has become a key driver of financial inclusion. Financial inclusion was originally a BPNG-led initiative, and is now a national strategic priority.

Women’s Micro Bank’s services successfully address several financial inclusion objectives:

• providing deposit-taking and lending opportunities to people who would otherwise be unbanked
• promoting financial literacy and business development skills by supporting training
• encouraging people in the informal sector, such as market vendors, to graduate into the formal economy, through access to banking services, financial assistance and capacity building
• supporting the MSME and SME sectors
• helping grow the agriculture sector value chain, particularly for coffee, vanilla, cocoa and copra businesses.

From BPNG’s point of view, each of these activities makes a significant contribution to achieving the broader objective of building sustainable economic growth.

I also acknowledge Women’s Micro Bank’s willingness to collaborate with other organisations, including Government agencies, and national and international development partners, to achieve meaningful and valuable results.

These practices reflect a clear recognition by the leadership of Mama Bank that operating a successful enterprise in our modern world requires partnering, cooperation and effective communication. As the regulator of the PNG financial system, the Bank of Papua New Guinea welcomes this attitude in participants in the financial services sector.

I mentioned Mama Bank’s reputation as an innovator. This is of particular interest to me. As some of you may know, in my previous role as Assistant Governor, one of my key responsibilities was to create a favourable environment in which financial technology, fintech, could be developed to help bring basic financial services to all PNG citizens.

One of the successful initiatives BPNG has implemented is the Regulatory Sandbox. This is a system where products are put through rigorous testing to make sure they will work in the real world and will comply with the applicable rules and regulations, without the cost and risks associated with launching a new product to the marketplace.

The sandbox’s first graduate, a digital ID product that provides certainty of identification without the need for mains power or internet access, has now been adopted by Mama Bank and implemented as an ID card, in partnership with the fintech developer Digizen.

The Digital ID innovation is not the first time Mama Bank has led the way with fintech to reach customers.

I note that Women’s Micro Bank introduced biometrics back in 2018 to enable its customer enrolment process, the first of its kind in PNG.

With this strong tradition of bringing simple and effective financial services to the unbanked, it is obvious that Women’s Micro Bank recognises the challenges that financial institutions in our country face, when it comes to providing relevant products and services to citizens, particularly those in rural or remote regions. And has made the commitment to introduce fintech innovations to address those challenges.

Opening the Kerema branch is another way Women’s Micro Bank has made a commitment to encouraging people to access financial services. I understand that the Kerema branch will enable the people of the district, particularly the women, to take advantage of services such as the SME credit guarantee scheme, financial literacy training, as well as basic services, including deposit-taking and loans.

The branch will provide a practical and desirable alternative to the risks of holding cash, informal money lending and money scams, all of which stop people from building a comfortable standard of living.

Today’s official opening gives members of the community the opportunity to take significant steps forward towards building their financial security and financial independence.

Thank you again for inviting me to be part of this important milestone, which also marks Women’s Micro Bank’s 10 years of official operation as a licensed micro bank.

On behalf of the Band of PNG Board, management and staff of the Bank of Papua New Guinea, my congratulations to Women’s Micro Bank/Mama Bank on the official opening of your fifth branch, here in this very special location of Kerema Town.

PRESS RELEASE
ALTERNATIVES TO PRIVATE SECTOR CHEQUES GIVEN THUMBS UP

Customers in remote areas now have several easy-to-use and more secure alternatives to private sector cheques, well within time to replace private sector cheques.

Even though there are just over 11 weeks to go before the use of private sector cheques officially ends, on 30 June 2024, the commercial banks are offering digital products,
vouchers and private bills of exchange, such as Special Withdrawal Forms (SWFs).

As these digital services continue to roll out, farmers and businesses in remote areas will have access to secure and lower cost payment alternatives to the expensive process of receiving funds from agents by cheque and incurring the cost of redeeming the cheques in trade stores or other service locations.

Several prominent business and political leaders had publicly expressed concern about the potential negative impact to citizens in remote areas if private sector cheques were discontinued.

The National Payments Council Sub-committee (NPCSC) members have held a series of meetings with executives representing the PNG business community, and more recently with Hon. Allan Bird MP, Governor of East Sepik Province. The feedback from these meetings confirmed that the awareness program and preparations for alternatives to cheques are adequate.

The NPCSC plans further meetings with executives representing Chambers of Commerce in the provinces to discuss how the alternative solutions, now available, will benefit customers.

BPNG emphasises that this decision by the National Payments Council (NPC)* to end private sector cheques does not affect government cheques, which will continue to be accepted.

*The National Payments Council comprises PNG’s licensed financial institutions and is chaired by the Bank of Papua New Guinea.

Private sector cheques will not be accepted for payment by commercial banks and financial institutions in PNG after close of business on 28 June 2024. Private sector cheques presented after 28 June 2024 will not be honoured. Unused cheque books are redundant after 28 June 2024. Individuals, businesses, companies and institutions who have cheque books should contact their banking organisation as soon as possible to arrange secure alternative payment methods that comply with the Bills of Exchange Act.

Media enquiries: Mr Gaona Gwaibo, Manager, Payments System Department Tel: 322 7208 or email: [email protected]

Authorised by: Ms. Elizabeth Genia, AAICD
Governor, Bank of Papua New Guinea. Chair, National Payments Council

50^th ANNIVERSARY CELEBRATION AND OFFICIAL LAUNCH OF BPNG VISION 2050

Ms Elizabeth Genia, Governor (acting)

4 November 2023 – APEC Haus

Garu eboebo om, pogi namana, hanua boi namona, gutpela evening;

Chief Secretary Ivan Pomaleu, Board members Mr James Gore, Deputy Governor Central Bank of Solomon Islands, Mr Reynold Moveni, Mr. Malcolm Mcdowell, CEO Note Printing Australia (NPA), Mr. Leigh Gordon CEO Royal Australian Mint (RAM), immediate past permanent Governor Mr Loi Bakani, if you are here, I want to acknowledge your presence, Sir Yano Belo , tenku tru long come na joining mipela – by the way , Sir Yano was with Sir Julius as an MP when they named our currency as Kina and Toea, Distinguished Guests, (IMF, World Bank, CEOs), management, staff, former bank staff, invited guests, ladies & gentlemen.

Let me first, I recognise the traditional owners of the land on which we stand, the Motuan and Koitabuan people, and pay respects to elders, past, present and emerging.

Tonight we gather to celebrate an event that has deep significance for us all.  The 50^thAnniversary, when the selfless men and women who came before us, took a firm hold of the helm of the centre of our financial systems, and a tight grip of the rudder, as our young nation and, our Central Bank, began to help navigate a path towards independence, in November 1973.

We acknowledge the enormous contributions of all our leaders, those past and present. I will mention, in particular, Sir Henry ToRobert, the first Governor and Sir Julius Chan, the Minister for Finance at the time of the Bank’s establishment – and also Sir Mekere Morauta, who was the first Secretary for Treasury & Finance on Independence and second Governor of the bank, who went on to become Prime Minister of our great nation, and introduced so many important reforms to the financial system, that still stand today.

Just to quickly mention here also, more recently introduced legislation with FASU, playing a very important part in our financial system, in ensuring adherence to the Anti Money Laundering and Counter Terrorism Financing Act (2015).

We acknowledge, with sincere gratitude, the work of the late Sir Wilson undertook, with Professor Stephen Howes and Sir Robert Igara – and the Independent Advisor Group (IAG) recommendations that led to the amendments to the Central Banking Act in 2021, with further amendments to the Act expected later this year.

Those first set of amendments to the Central Bank in 2021, rendered the Office of Governor vacant, and Mr Benny Popoitai replaced Loi, serving in an Acting capacity for 12 months, as have I since January of this year.

Please allow me at this time, to acknowledge someone in particular when I got on board this Lakatoi as part of its crew in 1983. Mr. Silan Nadarajah, was the Manager Internal Audits, when I joined the bank as an audit officer. He mentored, coached and guided me in my early years with the Bank.  Mr Nadarajah, worked with our founding Governor Sir Henry, Sir Mekere and Sir Wilson – I still seek his counsel today. Thank you Silan for accepting our invitation to attend this 50^th anniversary celebration with us today.

Most of you attended the official launch of the 50^th Anniversary year on Wednesday. You shared the colour, sound and movement of the exciting spectacle.

You heard the story of the Bank’s beginning in 1973 and how, over the past half century we have become the centre of the PNG financial system.

You shared the passion of the guest speakers. And witnessed the high regard in which BPNG is held, and the confidence our present-day leaders have in us.

And that includes our Prime Minister, James Marape MP, who challenges us to create the economic environment and robust financial system that will see the PNG economy double to PGK 200 billion within the next 10 years and PGK500 billion within the next 50 years.

Prime Minister Marape also quoted from a speech Sir Julius Chan had made exactly 50 years ago, at the dinner celebrating the establishment of the Bank of Papua New Guinea.

In Sir Julius’s words: “… the Bank of Papua New Guinea must establish itself in the eyes of the financial community as an institution which gives direction and leadership and one which, in cooperation with banks and financial institutions, gives effect to policies which will promote national objectives.”

I want to pause, and emphasise that point “promoting national objectives” for a moment.

The same speech Sir Julius gave at that historic dinner also featured in my words on Wednesday. I would like again, quote a few of those words tonight…

“The Bank is, and must continue to be an expert institution. It must not, however, become an elite institution, removed from, and out of touch with, the needs and aspirations of the people it is ultimately set up to serve.”

Sir Julius went on to say “….it has responsibility for directing and controlling the financial system. The Bank must therefore first establish its own direction, and its own goals, and it can only do this well if it is tuned into the needs and wishes of its people.” 

And “…the Bank needs vision, and a sense of purpose, as well as technical ability.”  I want to pause, here again, for a moment.

Sir Henry ToRobert, our Founding Governor, who served for 20 years, took these words very seriously.

As I said on Wednesday, the discipline Sir Henry instilled into the culture of the Bank, right from the start, his strong belief and confidence in the Management and Staff, as well as his dedication and commitment to the Central Bank, set the Bank’s sails true, to successfully navigate the tides of change in the country.

Sir Henry ran a very tidy ship. He established a workplace where real effort was valued, where hard work was acknowledged, and where life-long learning and continuous skills development went hand-in-hand with mentoring and supporting others to reach their potential.

Sir Mekere Morauta succeeded Sir Henry in 1993. He was a reformist and a strong advocate for good governance and independence of government institutions. He eventually became Prime Minister of Papua New Guinea in 1999. As Prime Minister, He was responsible for amending the Central Banking Act in 2000 which gave the bank greater independence, and reforming the superannuation industry with the introduction of the Superannuation Act 2000. Late Sir Wilson Kamit and Loi Bakani continued to steer and steady the Lakatoi.

Those of us who served under their leadership, and in particular, under the governorship of Sir Henry, and I can see quite a few of you in this room, will agree that the experience (under him) stood us in good stead for the challenges to come.

Tonight, I pay tribute to our past governors, to our board, to our management and to our staff for laying the foundation and building the Bank up to where it is today, at the centre of PNG’s financial system.

It is incumbent on those of us in leadership and management positions today, to identify and groom the next generation of managers and leaders in the bank for tomorrow. I firmly believe in the notion, “a leader or a manager is only as good as those around him or her.”

While tonight’s gala event is a celebration of the outstanding achievements of the Bank over the past 50 years, it is also a time to look forward and continue the journey.

So now to the future.

In May this year, the Board and I joined with management to set out the Bank’s vision for 2050.

We started by talking to our government partners, regional business associations, commercial banks and financial institutions, and international funding organisations. Those conversations gave us a range of insights and perspectives.

We then cast our minds forward to the year 2050, to rethink where the world will be, and what the people of PNG would need from a Central Bank in a changing, fast paced world.

We thought deeply about the needs of our country, and imagined what we could achieve to support economic development and how we would enable sustainable growth.

We talked about the barriers Papua New Guineans face accessing and benefiting from the financial system and what role the Bank plays in this.

We considered our role as the custodian of the financial system.

We asked the critical question, “how can price stability and the development of the financial system improve the lives of all Papua New Guineans?”.

The result of all this information-gathering and deep thinking is the BPNG Vision 2050.

I am extremely proud of everything that went into to creating this document, and I am delighted to share its official launch with you all, on this special evening.

There is no better time to talk about the Bank’s first long term strategy than on the anniversary of the Bank’s birth, and to share the vision of “economic opportunities for all Papua New Guineans”.

BPNG Vision 2050 reminds us, very clearly, who we are and why we exist.

Quite simply, we are the custodians of the monetary and financial system in Papua New Guinea, and we are, very importantly, the banker to the Government.

Our focus is to develop, maintain and promote a sound and efficient monetary, and financial system, that enables economic growth and employment.

We exist to moderate the impacts of economic volatility. And foster conditions that improve the lives of all Papua New Guineans.

In all these roles and responsibilities that describe the BPNG of the future, we hear Sir Julius Chan’s words from 50 years ago, resonating loud and clear.

And we think about the innate strength we have within ourselves, and within the Bank, thanks to the capacity building focus that has been part and parcel of the institution, since Sir Henry was in charge.

BPNG Vision 2050, sets out our strategic aspiration for the future: the right policy settings for – “Economic opportunities for all Papua New Guineans.”

Let’s unpack the meaning of that key statement.

To create the conditions that will give the people of PNG, access to economic opportunities, our nation must have price stability and an effective financial system. If they do have access to those economic opportunities, the economic wellbeing of Papua New Guineans will improve.

If they have access to those economic opportunities, the economic wellbeing of Papua New Guineans is assured.

It’s our job to assist with the policy settings to encourage favourable conditions, that will create economic opportunities – we must constantly be looking at those clouds, or that sunrise, on the horizon.

Through the actions we take to ensure price stability, and an effective financial system, the Bank of Papua New Guinea will contribute to the social, and economic transformation of PNG.

Importantly, the BPNG Vision 2050, is aligned with the National PNG Vision 2050 – a point that Prime Minister Marape acknowledged in his speech on Wednesday.

In our role as the central bank, we contribute directly to the second pillar of the National Vision, which relates to economic growth and wealth creation, with the objective of “enabling a dynamic and competitive economy”.

We are about to embark on a challenging, long-distance voyage. Our destination is BPNG Vision 2050. A successful voyage will mean economic opportunities for all Papua New Guineans.

The voyage will not be straight-forward. We don’t have detailed maps for reaching our destination. We will have to navigate uncharted waters.

And no, it won’t be like being on a customer tailored, tourist cruise!!

We will be challenged like never before, and we have to carefully build the right vessel, for this very specific purpose, just as the Lakatoi was purpose-built, for those long ocean voyages.

Show slide of the Lakatoi

To reach our destination, our BPNG Lakatoi will need supplies, resources and favourable conditions.

Navigational expertise will be essential – this is the role performed by the Chair and the Board.

The captain and senior officers, represented by the Governor, and the Management, must articulate our vision, and always lead by example.

The crew, represented by our staff, will need to be work closely together, to demonstrate exceptional expertise, and exhibit unwavering commitment.

All must share in the vision, a sense of purpose, and commitment to an enduring set of values, and beliefs.

Just as if we were, in reality, heading on an ocean voyage on a Lakatoi, our vision for 2050 is ambitious and will present significant challenges, in our complex and dynamic operating environment.

We will encounter stormy seas, navigate difficult waters, and will have to alter our course to adapt to changing conditions, to get to our destination.

We will need to change our mindsets to shift our perspective, embrace change and refine our approach.

We must not in any way, limit ourselves. We must not do things, just because it is the way things have always been done, and nothing, must ever get in the way of good policy.

Now we hear the echo of the prophetic words from Sir Julius, navigator of the BPNG Lakatoi, “the Bank needs vision, and a sense of purpose, as well as technical ability”.

We have the technical ability, thanks to the strong focus the Bank has had on capacity building – throughout our history, and right back to the time of Sir Henry.

And now, with the BPNG Vision 2050 document ready for distribution, we have our Vision for the future, and a clear sense of purpose.

I am grateful we have young team of knowledgeable and talented technical experts who staff the bank, supported by the experienced advisors and the board. Together we will work hard to ensure the Bank stays relevant and pragmatic, is able to adapt to changes in the global environment, maintains its edge and delivers on its mandates to all its stakeholders, including the citizens and government of PNG.

As an organisation, we also want to focus on inclusion and diversity as well as gender equity.

Our Prime Minister challenged the bank on Wednesday to help grow the economy to K200 billion within the next 10 years and 500 billion within the next 50 years. Through the strategic direction the bank has embarked on and in line with Our Vision for 2050, I am confident that the Bank will develop into a trusted and modern Central Bank by 2050, helping to oversee the social and economic transformation of the country and creating the environment needed for economic opportunities for all Papua New Guineans.

As we embark on this momentous voyage, we need to make sure we have our course set clearly. From half a century ago, the words still ring true.

We have “responsibility for directing and controlling the financial system. The Bank must therefore first establish its own direction, and its own goals, and it can only do this well if it is tuned into the needs and wishes of its people.” 

And now we are ready, willing and able, to set out on that path to our destination, and to our destiny.

I am immensely proud, delivering these few words to you this evening – and I am immensely proud of the Bank, on reaching this milestone.

I look around, and I see people who have been with the Bank for 10, 20, 30, 40+ years.

No-one knows the level of service, and the dedication, with which you have served.  Those late-night meetings, selflessly averting some very serious issues.

We won’t get that time back but I want you to know, that you have given to the Bank more, than can ever be repaid.

We all of us serve, and we all serve together.

Ladies and Gentlemen, let us all join together, in celebrating the Gala Anniversary Ball, for the Golden Jubilee, the 50^th anniversary of the Bank of Papua New Guinea.

Happy anniversary.

I thank you all.

50^th ANNIVERSARY CELEBRATION AND OFFICIAL LAUNCH OF BPNG VISION 2050

Ms Elizabeth Genia, Governor (acting)

4 November 2023 – APEC Haus

Garu eboebo om, pogi namana, hanua boi namona, gutpela evening;

Chief Secretary Ivan Pomaleu, Board members Mr James Gore, Deputy Governor Central Bank of Solomon Islands, Mr Reynold Moveni, Mr. Malcolm Mcdowell, CEO Note Printing Australia (NPA), Mr. Leigh Gordon CEO Royal Australian Mint (RAM), immediate past permanent Governor Mr Loi Bakani, if you are here, I want to acknowledge your presence, Sir Yano Belo , tenku tru long come na joining mipela – by the way , Sir Yano was with Sir Julius as an MP when they named our currency as Kina and Toea, Distinguished Guests, (IMF, World Bank, CEOs), management, staff, former bank staff, invited guests, ladies & gentlemen.

Let me first, I recognise the traditional owners of the land on which we stand, the Motuan and Koitabuan people, and pay respects to elders, past, present and emerging.

Tonight we gather to celebrate an event that has deep significance for us all.  The 50^thAnniversary, when the selfless men and women who came before us, took a firm hold of the helm of the centre of our financial systems, and a tight grip of the rudder, as our young nation and, our Central Bank, began to help navigate a path towards independence, in November 1973.

We acknowledge the enormous contributions of all our leaders, those past and present. I will mention, in particular, Sir Henry ToRobert, the first Governor and Sir Julius Chan, the Minister for Finance at the time of the Bank’s establishment – and also Sir Mekere Morauta, who was the first Secretary for Treasury & Finance on Independence and second Governor of the bank, who went on to become Prime Minister of our great nation, and introduced so many important reforms to the financial system, that still stand today.

Just to quickly mention here also, more recently introduced legislation with FASU, playing a very important part in our financial system, in ensuring adherence to the Anti Money Laundering and Counter Terrorism Financing Act (2015).

We acknowledge, with sincere gratitude, the work of the late Sir Wilson undertook, with Professor Stephen Howes and Sir Robert Igara – and the Independent Advisor Group (IAG) recommendations that led to the amendments to the Central Banking Act in 2021, with further amendments to the Act expected later this year.

Those first set of amendments to the Central Bank in 2021, rendered the Office of Governor vacant, and Mr Benny Popoitai replaced Loi, serving in an Acting capacity for 12 months, as have I since January of this year.

Please allow me at this time, to acknowledge someone in particular when I got on board this Lakatoi as part of its crew in 1983. Mr. Silan Nadarajah, was the Manager Internal Audits, when I joined the bank as an audit officer. He mentored, coached and guided me in my early years with the Bank.  Mr Nadarajah, worked with our founding Governor Sir Henry, Sir Mekere and Sir Wilson – I still seek his counsel today. Thank you Silan for accepting our invitation to attend this 50^th anniversary celebration with us today.

Most of you attended the official launch of the 50^th Anniversary year on Wednesday. You shared the colour, sound and movement of the exciting spectacle.

You heard the story of the Bank’s beginning in 1973 and how, over the past half century we have become the centre of the PNG financial system.

You shared the passion of the guest speakers. And witnessed the high regard in which BPNG is held, and the confidence our present-day leaders have in us.

And that includes our Prime Minister, James Marape MP, who challenges us to create the economic environment and robust financial system that will see the PNG economy double to PGK 200 billion within the next 10 years and PGK500 billion within the next 50 years.

Prime Minister Marape also quoted from a speech Sir Julius Chan had made exactly 50 years ago, at the dinner celebrating the establishment of the Bank of Papua New Guinea.

In Sir Julius’s words: “… the Bank of Papua New Guinea must establish itself in the eyes of the financial community as an institution which gives direction and leadership and one which, in cooperation with banks and financial institutions, gives effect to policies which will promote national objectives.”

I want to pause, and emphasise that point “promoting national objectives” for a moment.

The same speech Sir Julius gave at that historic dinner also featured in my words on Wednesday. I would like again, quote a few of those words tonight…

“The Bank is, and must continue to be an expert institution. It must not, however, become an elite institution, removed from, and out of touch with, the needs and aspirations of the people it is ultimately set up to serve.”

Sir Julius went on to say “….it has responsibility for directing and controlling the financial system. The Bank must therefore first establish its own direction, and its own goals, and it can only do this well if it is tuned into the needs and wishes of its people.” 

And “…the Bank needs vision, and a sense of purpose, as well as technical ability.”  I want to pause, here again, for a moment.

Sir Henry ToRobert, our Founding Governor, who served for 20 years, took these words very seriously.

As I said on Wednesday, the discipline Sir Henry instilled into the culture of the Bank, right from the start, his strong belief and confidence in the Management and Staff, as well as his dedication and commitment to the Central Bank, set the Bank’s sails true, to successfully navigate the tides of change in the country.

Sir Henry ran a very tidy ship. He established a workplace where real effort was valued, where hard work was acknowledged, and where life-long learning and continuous skills development went hand-in-hand with mentoring and supporting others to reach their potential.

Sir Mekere Morauta succeeded Sir Henry in 1993. He was a reformist and a strong advocate for good governance and independence of government institutions. He eventually became Prime Minister of Papua New Guinea in 1999. As Prime Minister, He was responsible for amending the Central Banking Act in 2000 which gave the bank greater independence, and reforming the superannuation industry with the introduction of the Superannuation Act 2000. Late Sir Wilson Kamit and Loi Bakani continued to steer and steady the Lakatoi.

Those of us who served under their leadership, and in particular, under the governorship of Sir Henry, and I can see quite a few of you in this room, will agree that the experience (under him) stood us in good stead for the challenges to come.

Tonight, I pay tribute to our past governors, to our board, to our management and to our staff for laying the foundation and building the Bank up to where it is today, at the centre of PNG’s financial system.

It is incumbent on those of us in leadership and management positions today, to identify and groom the next generation of managers and leaders in the bank for tomorrow. I firmly believe in the notion, “a leader or a manager is only as good as those around him or her.”

While tonight’s gala event is a celebration of the outstanding achievements of the Bank over the past 50 years, it is also a time to look forward and continue the journey.

So now to the future.

In May this year, the Board and I joined with management to set out the Bank’s vision for 2050.

We started by talking to our government partners, regional business associations, commercial banks and financial institutions, and international funding organisations. Those conversations gave us a range of insights and perspectives.

We then cast our minds forward to the year 2050, to rethink where the world will be, and what the people of PNG would need from a Central Bank in a changing, fast paced world.

We thought deeply about the needs of our country, and imagined what we could achieve to support economic development and how we would enable sustainable growth.

We talked about the barriers Papua New Guineans face accessing and benefiting from the financial system and what role the Bank plays in this.

We considered our role as the custodian of the financial system.

We asked the critical question, “how can price stability and the development of the financial system improve the lives of all Papua New Guineans?”.

The result of all this information-gathering and deep thinking is the BPNG Vision 2050.

I am extremely proud of everything that went into to creating this document, and I am delighted to share its official launch with you all, on this special evening.

There is no better time to talk about the Bank’s first long term strategy than on the anniversary of the Bank’s birth, and to share the vision of “economic opportunities for all Papua New Guineans”.

BPNG Vision 2050 reminds us, very clearly, who we are and why we exist.

Quite simply, we are the custodians of the monetary and financial system in Papua New Guinea, and we are, very importantly, the banker to the Government.

Our focus is to develop, maintain and promote a sound and efficient monetary, and financial system, that enables economic growth and employment.

We exist to moderate the impacts of economic volatility. And foster conditions that improve the lives of all Papua New Guineans.

In all these roles and responsibilities that describe the BPNG of the future, we hear Sir Julius Chan’s words from 50 years ago, resonating loud and clear.

And we think about the innate strength we have within ourselves, and within the Bank, thanks to the capacity building focus that has been part and parcel of the institution, since Sir Henry was in charge.

BPNG Vision 2050, sets out our strategic aspiration for the future: the right policy settings for – “Economic opportunities for all Papua New Guineans.”

Let’s unpack the meaning of that key statement.

To create the conditions that will give the people of PNG, access to economic opportunities, our nation must have price stability and an effective financial system. If they do have access to those economic opportunities, the economic wellbeing of Papua New Guineans will improve.

If they have access to those economic opportunities, the economic wellbeing of Papua New Guineans is assured.

It’s our job to assist with the policy settings to encourage favourable conditions, that will create economic opportunities – we must constantly be looking at those clouds, or that sunrise, on the horizon.

Through the actions we take to ensure price stability, and an effective financial system, the Bank of Papua New Guinea will contribute to the social, and economic transformation of PNG.

Importantly, the BPNG Vision 2050, is aligned with the National PNG Vision 2050 – a point that Prime Minister Marape acknowledged in his speech on Wednesday.

In our role as the central bank, we contribute directly to the second pillar of the National Vision, which relates to economic growth and wealth creation, with the objective of “enabling a dynamic and competitive economy”.

We are about to embark on a challenging, long-distance voyage. Our destination is BPNG Vision 2050. A successful voyage will mean economic opportunities for all Papua New Guineans.

The voyage will not be straight-forward. We don’t have detailed maps for reaching our destination. We will have to navigate uncharted waters.

And no, it won’t be like being on a customer tailored, tourist cruise!!

We will be challenged like never before, and we have to carefully build the right vessel, for this very specific purpose, just as the Lakatoi was purpose-built, for those long ocean voyages.

Show slide of the Lakatoi

To reach our destination, our BPNG Lakatoi will need supplies, resources and favourable conditions.

Navigational expertise will be essential – this is the role performed by the Chair and the Board.

The captain and senior officers, represented by the Governor, and the Management, must articulate our vision, and always lead by example.

The crew, represented by our staff, will need to be work closely together, to demonstrate exceptional expertise, and exhibit unwavering commitment.

All must share in the vision, a sense of purpose, and commitment to an enduring set of values, and beliefs.

Just as if we were, in reality, heading on an ocean voyage on a Lakatoi, our vision for 2050 is ambitious and will present significant challenges, in our complex and dynamic operating environment.

We will encounter stormy seas, navigate difficult waters, and will have to alter our course to adapt to changing conditions, to get to our destination.

We will need to change our mindsets to shift our perspective, embrace change and refine our approach.

We must not in any way, limit ourselves. We must not do things, just because it is the way things have always been done, and nothing, must ever get in the way of good policy.

Now we hear the echo of the prophetic words from Sir Julius, navigator of the BPNG Lakatoi, “the Bank needs vision, and a sense of purpose, as well as technical ability”.

We have the technical ability, thanks to the strong focus the Bank has had on capacity building – throughout our history, and right back to the time of Sir Henry.

And now, with the BPNG Vision 2050 document ready for distribution, we have our Vision for the future, and a clear sense of purpose.

I am grateful we have young team of knowledgeable and talented technical experts who staff the bank, supported by the experienced advisors and the board. Together we will work hard to ensure the Bank stays relevant and pragmatic, is able to adapt to changes in the global environment, maintains its edge and delivers on its mandates to all its stakeholders, including the citizens and government of PNG.

As an organisation, we also want to focus on inclusion and diversity as well as gender equity.

Our Prime Minister challenged the bank on Wednesday to help grow the economy to K200 billion within the next 10 years and 500 billion within the next 50 years. Through the strategic direction the bank has embarked on and in line with Our Vision for 2050, I am confident that the Bank will develop into a trusted and modern Central Bank by 2050, helping to oversee the social and economic transformation of the country and creating the environment needed for economic opportunities for all Papua New Guineans.

As we embark on this momentous voyage, we need to make sure we have our course set clearly. From half a century ago, the words still ring true.

We have “responsibility for directing and controlling the financial system. The Bank must therefore first establish its own direction, and its own goals, and it can only do this well if it is tuned into the needs and wishes of its people.” 

And now we are ready, willing and able, to set out on that path to our destination, and to our destiny.

I am immensely proud, delivering these few words to you this evening – and I am immensely proud of the Bank, on reaching this milestone.

I look around, and I see people who have been with the Bank for 10, 20, 30, 40+ years.

No-one knows the level of service, and the dedication, with which you have served.  Those late-night meetings, selflessly averting some very serious issues.

We won’t get that time back but I want you to know, that you have given to the Bank more, than can ever be repaid.

We all of us serve, and we all serve together.

Ladies and Gentlemen, let us all join together, in celebrating the Gala Anniversary Ball, for the Golden Jubilee, the 50^th anniversary of the Bank of Papua New Guinea.

Happy anniversary.

I thank you all.

The Bank of Papua New Guinea is currently seeking highly skilled individuals or agencies to provide services in the following areas. Click for more