## Papua New Guinea: Financial System Stability Assessment

_IMF Staff Country Reports, July 5, 2011_

## Source details

**Canonical URL:** [Papua New Guinea: Financial System Stability Assessment](https://www.imf.org/en/publications/cr/issues/2016/12/31/papua-new-guinea-financial-system-stability-assessment-25013)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/31/papua-new-guinea-financial-system-stability-assessment-25013/index.md)
- [Structured JSON version](/en/publications/cr/issues/2016/12/31/papua-new-guinea-financial-system-stability-assessment-25013/index.json)
- [Bundle manifest](/en/publications/cr/issues/2016/12/31/papua-new-guinea-financial-system-stability-assessment-25013/bundle-manifest.json)

## Bibliographic details
- Published: July 5, 2011
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781455291694.002

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### Executive summary and systemic findings
- Papua New Guinea (PNG) was only mildly impacted on the financial front during the global crisis.
- The financial sector in PNG has been a source of strength in 2000, but vulnerabilities exist and need to be carefully managed.
- The development of local government securities markets is important for system stability.
- Five years after the enactment of the Proceeds of Crime Act (POCA), there is still no legislation on terrorist financing.

### Identified vulnerabilities and areas for attention
- Regulation and supervision:
  - Important steps are needed to strengthen the regulation and supervision of the banking sector.
  - Important steps are needed to strengthen the regulation and supervision of the insurance sector.
- Market infrastructure:
  - Development of local government securities markets is highlighted as important for system stability.
- Legal and compliance framework:
  - Despite enactment of the Proceeds of Crime Act (POCA), there is an absence of legislation on terrorist financing five years after POCA.

### Policy recommendations (implicit from assessment)
- Strengthen regulatory frameworks and supervisory capacity for:
  - Banking sector oversight.
  - Insurance sector oversight.
- Promote development of local government securities markets to enhance financial-system stability.
- Adopt legislation addressing terrorist financing to complement the Proceeds of Crime Act (POCA).

### Key publication facts and identifiers
- Publication date: July 5, 2011
- Pages: 48
- Issue: 163
- Series: Country Report No. 2011/163
- DOI: https://doi.org/10.5089/9781455291694.002
- ISBN: 9781455291694
- ISSN: 1934-7685

*Papua New Guinea: Financial System Stability Assessment — July 5, 2011*

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/papua-new-guinea-financial-system-stability-assessment-25013_