Papua New Guinea has a high interest rate margin compared Asian and Pacific economies.
This was made known today in a workshop today by the Professor of Finance in the school of Business in University OF New South Wales, Professor Satish Chand. According to a report put together from a study the reason showing why the rate margins are high are the high cost of doing business, lack of competition, the high cost of lending and policy rates set by Bank of PNG to name a few. “These are some of the reasons why interest rates margins are high and this is what I got from literature and talking to the state holders,” says Chand. Chand when comparing PNG with other pacific island nation like Fiji, it was discovered that interest rate for some commercial bank loans a where quite high. He concluded by suggesting the way forward by having important financial bodies like BPNG, and price regulating agency like the ICCC and national research body like NRI to talk together and look for possible way to have some sort of reduction in the rate of interest margin. Next News Headline
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