Pacific-based banking company BSP Financial Group (ASX:BFL) has jumped +7% in morning trades on Friday as the company highlighted comments made by PNG PM James Marape to the effect of committing to a ‘strong banking sector.’ That really means “we’ll leave you mostly alone,” which is clearly what shareholders wanted to hear.
The reassurance comes after some were startled earlier in the week when PNG declared it would be reintroducing the government-led National Banking Corporation (NBC) which the gov’t has framed as a move increasing competition, not the opposite.
Stakes are potentially high: according to a PNG gov’t press release, 80% of the country’s population remains unbanked, “especially in rural areas.” That mightn’t address the fact 80% of PNG’s population, especially in rural areas, probably have bigger things to worry about than getting a bank account.
But that’s besides the point – it appears as if BSP managed to land on Marape’s desk with enough ire, because the gov’t specifically addressed the company on Friday. “This is not about stripping BSP of government accounts or undermining its role,” Marape said.
“BSP will continue to service and maintain government accounts, and there will be no drastic shifts … all financial institutions, including BSP, [will] continue to thrive while giving NBC the space to meet its special mandate of bringing financial access to every Papua New Guinean,” the Prime Minister of PNG added.
The announcement comes as the Pacific Islands Forum rolls on, attended by Anthony Albanese earlier this week. It’s not the first time PNG’s notoriously hands-on PM James Marape has made concessions for Australian companies, either.
This finance journalist used to be an oil and gas reporter and remembers when Santos once coordinated an event in PNG at around the same time it listed on the PNGX; Marape personally helped deliver steaks to tables for white CEOs. Talk about collaboration.
(BSP Financial is also listed on the PNGX, that might be all it takes.)
BFL last traded at $7.66/sh.
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