10 Oct 2006

PNG bank buys Solomons and Fiji banks

11:59 am on 10 October 2006

The Bank of South Pacific, the BSP, is expanding in the region by initiating moves to buy out the National Bank of Solomon Islands and the Fiji arm of the Pakistan-based Habib Bank.

The chairman of the Papua New Guinea-based BSP, Noreo Beangke, says they expect these acquisitions to be finalised by the end of the year.

He says agreements for the sale and purchase of both banks were executed following a meeting of the BSP board's acquisition committee last week.

Mr Beangke says the purchases require the approvals of the Reserve banks of Papua New Guinea, Solomon Islands and Fiji.

He says the proposed acquisitions will diversify Bank of South Pacific's geographical risk profile and long term revenue generating capacity.