Tonga's Reserve Bank explains licence revoke Featured
Tonga National Reserve Bank Building
2 August, 2016. Tonga's National Reserve Bank has explained why it revoked the licence of a Chinese-Tongan bank last week.
The Governor of the Reserve Bank, Ngongo Kioa, told media that the Pacific International Commercial Bank failed to to honour a business plan, and had not submitted an audit report.
In the unprecedented move, the Reserve said the bank had not honoured its promise to provide a niche product that would bring $100 million US dollars into the country for the purpose of loans.
Dr Kioa said there were warnings issued in 2014 and the bank received a final warning 14 months ago.
When it was awarded its licence by the Reserve Bank three years ago, PICB operated as the fifth bank in Tonga.
The bank had been in financial trouble and filed an application in January last year to appoint a liquidator.
-RNZI
