Nauru formalises agreement to set up banking agency in Nauru
The Government of Nauru and the
Bendigo and Adelaide Bank have signed an Agency Agreement this week
(23 Feb) formalising plans to operate an agency model of the bank
in Nauru.
"The signing of the Agreement has been a long time coming but the
infrastructure and underlying governance issues were considerable
and required careful planning," His Excellency President Baron Waqa
said.
The government had sighted a letter from the Australian Prudential
Regulatory Authority (APRA) confirming that it undertakes a global
supervision approach to the Bank and that this included the
business of the Nauru Agency.
This allowed the Finance Minister Hon David Adeang to issue a
banking licence to Bendigo and Adelaide Bank to operate the Agency
in Nauru.
"Having banking facilities in Nauru is a major step forward and
will facilitate commerce and retail activity in a far more cost and
time efficient way than the current reliance on cash," Minister
Adeang said.
The Agency will open at the Civic Centre in Aiwo District and
occupy part of the premises currently used by the Nauru Revenue
Office. However, several logistical issues and training needs for
staff are yet to be addressed before the opening of the Agency
which is expected at the earliest possible time.
Executive of Community Engagement for Bendigo Back Robert Musgrove
said the bank will employ the same public agency model in Nauru as
it uses in Australia.
"This is an important initiative of the bank and it is especially
pleasing to be now providing banking services to the people of
Nauru who have been without them for some 15 years," Mr Musgrove
said.
Greg Watson will be manager of the Agency. Mr Watson is an
experience banker who was responsible for the entry of the Bank of
South Pacific in Fiji by establishing a branch in the capital
Suva.
President Waqa stated that the role of the Government was to
provide the infrastructure and underwrite the costs of operating
the Agency but has no input or control over the operations of the
banking business.