Kina Securities is working with the Australian government and other donors to set up a credit fund for small- and medium-sized business. Chief Executive Greg Pawson has told business leaders in Port Moresby the scheme is part of the bank’s corporate social responsibility.

Kina’s Chief Executive Greg Pawson. Source: Kina Bank

Four months since taking over as CEO of PNG’s fourth commercial bank, Greg Pawson outlined his five development priorities for the year to business leaders in Port Moresby.

They include: developing partnerships and digital banking products, observing corporate responsibilities, and improving branding and staff training.

He said the bank’s corporate social responsibilities would include involvement in a joint venture with the Australian government and other donors to create a discrete capital fund.

Kina would also assist the Bank of PNG with its financial inclusion plans, probably through a micro finance company.

‘The bank’s focus this year would be to upgrade its core banking system.’

He said the bank would also look at developing youth entrepreneurship.

Pawson explained the SME fund would be ‘separate from the bank’s business and therefore, there will be no risk on the bank’.

He added the bank’s focus this year would be to upgrade its core banking system, to improve online facilities and to open two more ‘concept’ branches, similar to Kina Bank’s branch at Vision City.

Kina depreciation

Kina Securities’ Head of Treasury and Markets, Nathan Wingti, told the meeting that Kina expected the kina currency would continue to slowly depreciate, noting it was falling ‘overall, 5-10 points a month’.

‘The coffee sector could make up some of the shortfall from the LNG output loss. Exports this year are expected to be 800,000 bags.’

His outlook on the economy ‘is pretty much consistent with what other commentators and institutions are focusing on’.

Wingti said he was keeping a close eye on the impact of the temporary shutdown of the PNG LNG plant and its impact on foreign income. But he believed it is too early to assess the impact on the economy.

Kina Bank’s Nathan Wingti. Source: Kina Bank

He noted that the coffee sector ‘could make up some of the shortfall from the LNG output loss’. Exports this year are expected to be 800,000 bags.

‘Our main message to customers is to make sure you stay close and continually assess what is coming through the market, talk to bankers and just be careful about your forward commitments around foreign exchange for the future,’ said Wingti.

According to Wingti some sectors are doing well while others are ‘struggling’. Those doing well include: owner-occupied mortgages, the retail investor market, and consumer and household credit.

The sectors struggling, he said, are: the high-end property market and retail, ‘with the currency issue playing out in that respect’.

‘We are quite confident about the future,’ he told his audience.