Credit Corporation Granted “Approval in Principle” for a Banking License by Bank of PNG

Credit Corporation Finance Limited (CCF), a subsidiary of Credit Corporation (PNG) Limited, has received an “Approval in Principle” for a banking license from the Bank of Papua New Guinea (PNG). The newly appointed Credit Corporation Board Chairman, Dr. Albert Mellam, announced the news, stating that the “Approval in Principle” is valid for a period of 12 months.

Dr. Mellam explained that the “Approval in Principle” represents a significant milestone in Credit Corporation’s new strategic direction, which involves becoming a niche commercial bank and ultimately aiming to list on the ASX. He also stated that Credit Corporation is well-positioned to become a new bank for PNG given its 45 years of lending experience in the country and a strong understanding of the local market.

“We have already made some significant investment decisions to set ourselves up for success, including upgrading our core banking system, introducing a new web-based application, and enhancing our processes, while recruiting new talent and upskilling our people,” said Dr. Mellam.

He further explained that Credit Corporation’s commitment to delivering high-quality services to the people of PNG remains unchanged. “We are proud of our heritage, which will enable us to become a truly home-grown PNG bank. PNG needs more banking competition to help reduce costs and expand services such as e-banking for customers,” he added.

Dr. Mellam believes that there are clear future opportunities in the SMEs and commercial business customers market and the emerging middle market. “We’ve been able to support these types of businesses and individuals with equipment loans, and as a bank, we will be able to extend our support for them along the entire customer journey as they succeed in business and require more products and services,” he said.

In addition to the banking license, Credit Corporation has also recently launched a new executive car loan product targeting executives. The product is a zero-equity car loan for executives who can afford to borrow 100% of the car price.

Dr. Mellam emphasized that the granting of the “Approval in Principle” came at a time when Credit Corporation’s financial and operational performance continued to strengthen following the impacts of COVID-19 on the economy and financial services sector. “We will continue to focus our efforts on becoming a more modern and relevant financial services group while strengthening our competitive position to generate long-term value for shareholders,” he said.

Credit Corporation plans to work with the Bank of PNG to finalize the necessary steps required to transition from a financial institution to a commercial bank. The company expects to launch as a new PNG bank next year.

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