PNG Governmnet to probe high bank fees

THE Government will closely monitor and manage fees charges by commercial banks to ensure they are affordable to the people, Treasurer Don Polye says.

“There are too many taxes charged by the banks,” Polye told Parliament yesterday.

“Every time you want to make a transaction, a fee is always charged and this is ridiculous.

“Not long, the banks will charge the air we breathe inside the banks because they seem to charge every service they are providing.”

The matter was brought up in parliament yesterday by National Capital District Governor Powes Parkop, who strongly criticised the way commercial banks were taxing people on almost all transactions and services provided.

Parkop questioned Polye on what the ministry was doing to regulate the tax regime imposed by the commercial banks operating in PNG.

Polye said a Financial Services Review Committee had been set up to look into the foreign exchange rates and fees imposed by banks on customers. “After the review, the committee will make a submission to Cabinet based on their findings and recommendations,” he said. 

“By the end of the year, all fees charged by the commercial banks will be manageable, affordable and justifiable.” He suggested that Polye should seriously look into the matter and ask the banks to consider a fee-free savings arrangement for people earning less than K10,000 annually.

“Where will our people go if the banks continue to tax them on all their transactions?” Parkop said

New Ireland Governor Sir Julius Chan supported Parkop’s statements and suggested that since the commercial banks were making “super” profits, the Government should charge them “super” taxes.