PNG NBC Boss Paul Thornton Quits, Citing Health Reasons

 PNG National Banking Corporation has confirmed the departure of its chief executive officer Paul Thornton, marking the end of a long banking career shaped by financial inclusion and institutional reform.

Mr Thornton stepped down due to medical reasons, according to the bank, leaving its board to manage day-to-day operations while arrangements are made for future leadership.

PNG NBC Boss Paul Thornton Quits, Citing Health Reasons

A veteran of Papua New Guinea’s financial sector for more than 47 years, Mr Thornton played a pioneering role in electronic banking and mobile-based services during his early years at PNG Banking Corporation. He later established the country’s first licensed microfinance institution in 1997, which expanded access to banking in rural areas and grew to more than one million active customers.

His work focused heavily on financial literacy and products tailored for small businesses, personal borrowers and first-home buyers. At NBC, he led the transformation from a microfinance operation into a fully licensed commercial bank in December 2024, introducing electronic and mobile banking platforms as part of a broader national expansion strategy.

The resignation comes shortly after the Prime Minister’s commercial relaunch of the bank and amid ongoing public debate over the transfer of government accounts from Bank South Pacific. Mr Thornton had previously acknowledged that the bank faced capacity challenges while adjusting to new responsibilities and ownership arrangements.

Former prime minister Peter O’Neill has criticised the handling of the process, calling it “secret and smelly” and questioning transparency around K100 million in investments and possible FATF-related risks. Economic analyst Paul Barker has also cautioned against political interference, warning that past state bank collapses offer hard lessons.

While NBC maintains that health concerns prompted the decision, the development has added momentum to speculation surrounding the bank’s future direction.

“I believe the foundation has been laid for a stronger national bank, but on medical advice I must now step aside,” Mr Thornton said.