WELLINGTON, Apr 27 (NNN-AGENCIES) – New Zealand Reserve Bank Governor, Adrian Orr, said today, its time for banks to “act with courage” and provide services, including money remittances, to the Pacific Islands.
The scale and complexity of the challenges facing Pacific Island countries are significant, including climate change and the severe economic impacts of COVID-19. With international travel and trade disrupted by the pandemic, many Pacific Island countries are facing tough times, Orr said.
“That means, the economic importance of Pacific people in New Zealand, being able to send money back to their home countries, through remittances, and maintaining financial corridors and services into the South Pacific countries, continues to grow,” he said.
New Zealand bank boards and chief executives need to show courage by supporting banking services and remittances with the ultimate goal of a stable, prosperous and resilient South Pacific region, the governor said.
The Reserve Bank expects that banks manage and mitigate risks rather than simply avoid them. Anti-money laundering laws are not an excuse to “de-bank” or “de-risk” from the Pacific Islands, he said.
Recently, withdrawal of correspondent banking services and “de-risking” of remittance service providers is making it harder and more expensive for Pacific people to access banking services and send money back to their home countries, according to the Reserve Bank.– NNN-AGENCIES
