Bank of South Pacific
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Bank of South Pacific (BSP) is Papua New Guinea’s largest bank, with 35 branches throughout the country and capital in excess of Kina 2 billion.
[edit] History
On 1 May 1957, National Bank of Australasia established a branch in Port Moresby.
In 1974, as Papua New Guinea (PNG) approached independence, now National Australia Bank (NAB) incorporated its operations in the country as Bank of South Pacific. It did so at urging of the new government, which wanted all banks in PNG to be locally incorporated.
In 1980 and 1981, BSP sold 13% of its equity to the public through an IPO.
In 1993, National Investment Holdings Limited (NIHL) acquired NAB’s 87% shareholding, and then the 13% in public hands, giving it 100% ownership of BSP.
In 1995, BSP increased its capital by selling a 25% stake to Credit Corporation (PNG), and a 22% stake to Motor Vehicles Insurance (PNG) Trust (now incorporated as Motor Vehicles Insurance Limited).
In 2002, BSP acquired the government’s 49% stake in Papua New Guinea Banking Corporation (PNGBC) in return for giving the government a 25% stake in BSP. PNGBC traced its origins back to 1916, when Australia’s government-owned Commonwealth Bank had established a branch in Rabaul and agencies elsewhere to support the Australian Army, which had entered to take over the German colony of New Guinea. In 1974, Commonwealth Bank had turned over its operations to the new government of Papua New Guinea, which changed the bank's name to PNGBC.
In 2004, BSP acquired Westpac’s branch in Niue. Westpac had established the branch in 1988 and it is the sole commercial banking operation in Niue.
In 2006, BSP acquired National Bank of Solomon Islands from the government of the Solomon Islands. It also acquired Habib Bank (Fiji), which Pakistan’s Habib Bank had established in Fiji in 1991.
[edit] Source
- Tschoegl, A. E. 2005. Foreign Banks in the Pacific: A Note. Journal of Pacific History 40 (2): 223-235.
