This follows the granting of an interim license to Solomon Finance Limited (SFL) to operate banking service in the country.
SFL is a subsidiary of SINPF, a statement from SINPF said.
“The Central Bank of Solomon Islands (CBSI) in exercise of the powers conferred by Section 5 of the Financial Institutions Act 1998 had granted Solomon Finance Limited (SFL) an interim license to carry out banking business as a credit institution in Solomon Islands subject to the provisions of the Financial Institutions Act 1998.
“The interim license with conditions is valid for 12 months. It was granted on 1st November 2019 for the wholly owned SINPF subsidiary Solomon Finance Limited (SFL),” the SINPF statement said.
The SFL was incorporated as a private company through shares to carry out banking business in Solomon Islands following endorsement by the SINPF Board, the statement added.
NPF General Manager and Interim Director of SFL Michael Wate said when the full credit license is finally issued to SFL after meeting the conditions of the interim license the bank will be providing competitively small loans to members, either for personal use or home loan.
“The idea to establish a standalone institution is to provide loans for members. This came about after NPF Board closed member loan schemes in 2000 where members used to have access for urban homes, rural homes and furniture,” he said.
“Finally, on a journey that started 10 years ago with past boards and management, we had achieved what we wanted to do for our members. This is a milestone just on the back of the informal sector product youSave successful launch last year in 2018, he added.
“I want us all to embrace this new investment plus the youSave that has the potential to touch the lives of our members,” CEO Wate said,
Solomon Finance Limited investment is base in the context of SINPF’s vision and mission to secure and enhance the future and to provide quality services and benefits to the members, the statement said.
“SFL also meets the risk and return requirements of the Board,” the statement said.
The new SFL office will be located on the ground floor of the Anthony Saru Building (ASB) in Honiara.