CBSI CLEARS STAND - Solomon Star News


24 March 2014

The Central Bank of Solomon Islands’ (CBSI) has clarified recent media statements regarding the applications of the Pacific Alliance Bank Ltd (PAB) and the Pan Oceanic Bank (POB).

In a statement issued on Monday the CBSI said it wishes to disassociate itself from any comments.

“First CBSI disassociates itself from comments made that may imply to the public that PAB is already granted an interim license to conduct business in Solomon Islands. This information is misleading.”

CBSI further clarified that although it has received an application for an interim license from PAB, the bank is yet to complete its full assessment of the application.

“Secondly, CBSI confirms receiving an application fee from PAB; but explains that is not for an interim or banking license, it is a non-refundable application processing fee to cover the expenses incurred or will incur as it investigates and assess the application.

“Payment of the application processing fee does not even guarantee, that the applicant will be granted an interim license or full banking license.”

The CBSI statement added the assessment on PABs’ application and the proposal is at its early stage and it is pre-mature to speculate that the bank is heading here.

“The whole process of assessment will be done within the 60 days as allowed by the Financial Institutions Act (FIA) and the length and speed of the processes very much depends on the availability of information to assess the application.

“Therefore the Central Bank would like to make it clear that it is too early to speculate on the outcome of its assessment at this stage.”

CBSI also confirmed that PAB was given permission under the FIA to use the word “bank” for its licensing application purposes not for publicity purposes.

CBSI further disassociated itself from reports that suggest Pan Oceanic Bank (POB) is having problems establishing correspondent banking arrangements.

“The Central Bank continues to receive monthly updates from POB and to date it is satisfied with the progress POB is making to establish its operations in the country. Based on these recent updates, POB is progressing well with establishing relationships with its corresponding banks,” CBSI said.

Central Bank of Solomon Islands
P.O. BOX 634
Ph: (677) 21791
Email: [email protected]