ABG moves to take control of non-bank financial regulation

ABG officials, during discussions with the National Treasury in Port Moresby, on the proposed transfer of financial regulatory powers to Bougainville. (Image: Supplied)

The Autonomous Bougainville Government [ABG] has taken another major step toward strengthening its economy by moving to take over the regulation of non-bank financial institutions in Bougainville.

ABG Minister for Treasury and Finance, Albert Punghau, met with Treasurer Ian Ling-Stuckey and senior Treasury officials to present a plan for transferring regulatory powers from the National Government to the ABG.

The proposal focuses on allowing Bougainville to regulate non-bank financial institutions such as microfinance organisations, savings and loan societies, and other community based financial service providers.

Minister Punghau said these institutions are important because they provide financial services to ordinary people, small businesses, and communities that are not well served by commercial banks.

“This partnership with the National Government gives us a practical way to strengthen Bougainville’s financial system while keeping national standards,” he said.

Under the proposal, ABG would take on regulatory responsibility in line with Section 290 of the National Constitution and the 2021 Sharp Agreement, which allow certain powers to be transferred to Bougainville.

ABG has also proposed setting up three regulatory units in Bougainville, supported by the Bank of Papua New Guinea, covering banks and finance companies, savings and loan societies, and microfinance institutions.

In the meantime, these units would operate within the ABG Department of Treasury and Finance to make sure supervision and consumer protection continue during the transition.

ABG plans to sign a Memorandum of Understanding with the National Treasury soon, and to be followed by a technical agreement with the Bank of Papua New Guinea by mid this year.

National Treasury officials have welcomed the proposal and agreed to continue technical discussions.

The move supports Bougainville’s preparations for greater self-government and the planned independence transition in 2027.

ABG says it will continue working closely with the National Government to ensure a smooth and responsible transfer of powers.