The Teachers Savings and Loan Society Ltd (TISA) welcomes the National Government's decision and initiative to amend the Central Banking Act 2000 (Act) to address the key underline areas of Governance, Accountability and Transparency and Objectives of the Bank of Papua New Guinea (Central Bank).

We commend the Minister for Treasury, Hon. Ian Ling-Stuckey, MP for moving swiftly with these changes, including establishing an Independent Advisory Group (lAG) to conduct the review and amending the Act. The lAG's submission of its Phase 1 report and recommendations in a very short period of time is highly commendable.

The Government's decision to amend the Act is timely since the last reform was carried out 20 years ago. We support the Government's vision of a "Central Bank of Papua New Guinea that is both independent and accountable, whose discretion is limited by law, and whose objectives are aligned to its functions".

We believe that these amendments are necessary to improve the Central Bank's coordination of monetary policy and micro/macro prudential policies. As a premier State institution, the Central Bank's transparency and accountability should help improve the Central Bank's credibility and further strengthen its ability to effectively pursue its mandate for the advantage of the people of Papua New Guinea.

The onus is now on the new Board of Directors and Governor of the Central Bank to institutionalize, embed and cascade these changes throughout the Central Bank to affect its culture and rendering it accountable and transparent. The institutional change should also encompass and pursue strengthening the capability of the Central Bank to better manage the changing landscape of the banking and financial sector.

TISA looks forward to the next phase of the lAG's review and remains committed to supporting the Government and Central Bank's agenda of promoting the development and growth of the banking and financial sector in Papua New Guinea.