Found the slide on responding to tax and potentially closing regional branches very interesting. I'm not familiar enough with PNG but wonder if they have viable alternatives like Post Banking and electronic banking that we have here? Probably not I suspect and closures would not be a good outcome for regions and PNG economy but wonder if there is any way for PNG gov. to force them to stay open. The domestic owned bank argument I don't think is very convincing, unlike foreign-owned banks which presumably could need to tap foreign shareholders in the event they needed more capital, presumably PNG investors already heavily invested will be easier to tap, especially if the kina is under pressure. Some feel like PNG gov has already burned KSL shareholders with Westpac decision, though that decision and process are justifiable in my view. With foreign banks winding down and no news on a buyer for Westpac operations can understand why BSP is only being targeted, question is what will be the response and will gov have stomach to swallow.
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