in fast money schemes or scams, the central bank puts out public notices in the media to educate and warn the public. you can assist us by relaying these messages to your stakeholders. challenges continuously faced by the financial sector are the tendency for the board and management to become complacement in the management of the institutions, to ignore good governance and accountability standards and allowing non - commercial pressures to derail good commercial practice. 6. 0 wau microbank limited in 1998, the government and the asian development bank ( adb ) agreed on the png - adb microfinance and employment project ( project ). the purpose of settling up the microbank was to use as a “ laboratory ” to test different microfinance products, services and delivery methodologies. one of the components of the project was the establishment of wau microbank which was a pilot project established under the png - adb microfinance and employment project. it was granted a conditional licence by the bank of papua new guinea in 2004. this in essence exempted the financial institution from some requirements of the bfia to accept deposits and provide microfinance services. the operations of wau microbank under the conditional licence has been satisfactory. over the past 2 years ended march 2008 : • total assets of the wmb increased from k 4. 3m to k 22. 2m • total deposits increased from k 2. 8m to k15. 6m • total loans increased from k 0. 6m to k 5. 5m • branches in lae ( ho ), wau, bulolo, madang, kainantu and wewak. • it had 165, 029 depositors, and • it has 10, 113 borrowers during 2007, the wau microbank applied for a full licence to enable it to expand its operations. the due diligence on the application was undertaken and the bank is satisfied with the application. one of the requirements imposed by us was for the bank to have a country wide recognized and acceptable name. on that note, ladies and gentlemen, it gives me great pleasure to announce that on 12th june 2008, in accordance with section 10 of the banks and financial institutions act 2000 approval was granted to wau microbank to change its name to “ nationwide microbank limited ”. i would like to ask the chairman, mr. ray clark to come forward and receive the new banking certificate for nationwide microbank limited. in line with that

l wilson kamit : microfinancing in papua new guinea speech by mr l wilson kamit, cbe, governor of the bank of papua new guinea, at the presentation of banking licence to nationwide microbank limited and opening of its new boroko branch, boroko, 17 june 2008. * * * acknowledgement hon. powes parkop, mp – governor for national capital district chairman of wau microbank – mr ray clark deputy governor – mr popoitai deputy governor – mr bakani mr lionel somaratna, ceo, wau microbank distinguished guests, ladies and gentlemen 1. 0 introduction i wish to thank the board of wau microbank for the invitation to officiate in today ’ s event. in particular, there are a few important reasons for being here today partly to witness the results of the hard work of the board, management and staff of wau microbank, culminating in the opening of the new microbank ’ s branch in the national capital district but also to present a new banking licence to the entity that will continue the work of the “ wau microbank ”. 2. 0 historical developments the development of microfinance in png dates as far back as the 1960s with the establishments of savings clubs and savings and loan societies in many parts of the country under the guidance and involvement of the reserve bank of australia through its branch based in port moresby and later by the bank of papua new guinea through the registrar of savings and loan societies. over the years, numerous attempts to establish microfinance institutions and / or provide microfinance products were also undertaken by various non - government organizations and other government - funded donor agencies. the development bank in its various forms over the years has been known to have provided some microfinancing. many of these initiatives were very much subsidized. typically, many of these initiatives faced lots of challenges which included sustainability. it is one aspect to open up branches and other points of representation and yet another to sustain, maintain and grow the business without resorting to any form of subsidies. dependence on subsidized funds is fraut with problems as we have experienced in papua new guinea. ceo lionel sonaratna mentioned and emphasized sustainability in his remarks. however, despite these challenges and sad experiences many of us are keen to foster the growth of microfinance alongside the expansion and growth of other financial service providers such as banks, superannuation funds and the insurance industry. there