The issuance of banking licenses by the Bank of Papua New Guinea (BPNG) to two new commercial banks in the country on Monday 05th August, marks a significant step forward in efforts to improving the banking sector. BPNG’s Governor, Ms. Elizabeth Genia when making PNG banking history in approving and granting two commercial banking licenses to TISA Bank Limited and Credit Bank PNG, made it clear that this was indented to give more choice in banking services to the people. “The granting of the licenses confirmed that each applicant had satisfied the rigorous assessment process conducted by BPNG over a two-year period to ensure they met the high standards required to operate a commercial bank in PNG,” said Ms. Genia. “In meeting these standards, both TISA Bank Ltd and Credit Bank PNG demonstrated robust business plans, strong financial standing, and clear commitments to providing high standards of customer service.” “The addition of two new participants to the commercial banking sector is positive news for PNG and supports BPNG’s aim of developing a strong and vigorous financial system,” she said. She added that BPNG will continue to provide its support and guidance to both TIS Bank Limited and Credit Bank PNG through its supervisory and regulatory oversight, as it does with all commercial banks. She then went on to explain that for banks to retain their banking licenses, all commercial banks in PNG are required to comply on an ongoing basis with the Banks and Financial Institutions Act 2000, regulations, directives and prudential standards issued by BPNG from time to time. “As licensed commercial banks, TISA Bank Limited and Credit Bank PNG will also have the opportunity to contribute to banking industry development discussions, such as conducted through the National Payments Council.” Meanwhile, one of these two financial institutions that was granted its new banking license- Credit Corporation (PNG) Limited, has already come under fire after prematurely announcing its new commercial bank license issued by BPNG. This has resulted in the PNGX Markets Limited or the country’s stock exchange and trade, putting a temporary trading halt on its securities as of Friday 2nd August in accordance with PNGX Listing Rule 26.6.2, so to prevent disorderly market conditions and ensure that all market participants have access to complete and accurate information. The other financial institution recipient of this new commercial banking license, TISA, also pitched in calling for the immediate termination of the Chief Executive Officer of Credit Corporation following his premature announcement of the granting of a banking license, which TISA said constitutes a serious violation of Port Moresby Stock Exchange (POMSoX) rules.