Authorized Deposit-Taking Institutions
Objective of the Banking Supervision Department
The Banking Supervision Department (BSD) has primary responsibility for the supervision and the sound prudential management enforcement of the Authorised Deposit-Taking Institutions (ADI) of the financial system. ADIs includes commercial banks, finance companies, micro-banks, and savings & loan societies.
Banks & Licenced Financial Institutions
Banks and Licensed Financial Institutions (LFIs) are licensed under the Banks and Financial Institutional Act 2000 (BFIA) to conduct “banking business”. The BFIA defines banking business as the “business of taking money on deposit and using that money to lend to others or to finance any other activity of the business, wholly or to a material extent, out of the capital or interest on money received by way of deposit”.Under the BFIA, an institution can apply to be licensed as a bank or an LFI. The minimum capital requirements are K15 million for banks and K1.5 million for LFIs.
Prudential Standards
Banks & Licenced Financial Institutions
- PS 1/2011 Single Borrower and Large Exposure Limits
- BPS 310 Fit and Proper Requirements
- PS 6/2005 Transactions with Related Parties
- PS 7/2005 External Audits
- PS 1/2003 Capital Adequacy
- PS 2/2003 Asset Classification, Provision and Suspension of Interest
- PS 4/2003 Limits on Loans to Related Parties
- PS 5/2003 Limits on Inter-Bank Placements
- PS 2/2001 Foreign Currency Exposure Limits
- BPS320 Compliance Function Requirements
- BPS300 Corporate Governance
- PS 251 Business Continuity Management
- PS 252 Outsourcing of business activities, functions and processes
Licensing Applications
Banks & Licenced Financial Institutions
- Application for License to Conduct Banking Business
- Notification of Intent or Request to Become Shareholder Controller
Reporting Forms
Banks & Licenced Financial Institutions
Savings & Loan Societies
Savings and Loan Societies (S&L) are registered under the Savings and Loan Societies Act, 1915. The S&Ls are established by people sharing common bond of membership such as those employed in the same organization, industry or originating from the same province.
Under the act, the members own the society by virtue of their membership. The objects of S&Ls are to; (i) receive savings and make loans to their members, (ii) promote thrift amongst their members, and (iii) educate their members in financial responsibility.
Directives
- Savings and Loan Directives – General
- Savings and Loan Directives – Insurance Activity
- Savings and Loan Directives – Director’s Compensation
- Savings and Loan Directive – Investment in Property
- Savings and Loan Directives – Allowances
- Savings and Loan Directives-Quarterly Financial Returns
- Savings and Loan Code of Conduct
- Savings & Loan Law bilong gutpela wok pasin