The Bank of Papua New Guinea is a corporate entity first established under the Central Banking Act Chapter 138 in 1973. It commenced operations on 1 November 1973 as our country’s Central Bank. The primary objective of the Bank at that time was as follows:
“The Central Bank shall, within the limits of its powers, ensure that its monetary and banking policy is directed to the greatest advantage to the people of Papua New Guinea, and direct its efforts to promoting monetary stability and a sound and efficient financial structure.”
The Bank of Papua New Guinea was originally a branch of the Reserve Bank of Australia (RBA) in what was then the Territory of Papua and New Guinea. In 1971, the Select Committee on Constitutional Development established a Committee on Banking, which recommended a blueprint for the establishment of an independent banking system framework.
Prior to, and in anticipation of, self-government and independence, the Government first raised the idea of introducing a national currency in July 1973. The government of the day established a Currency Working Group comprising the Department of Finance and the Port Moresby branch of the RBA. The kina and toea were introduced as our national currency in April 1975.
The Bank has changed and grown since Papua New Guinea's Independence. The Central Banking Act Chapter 138 was repealed and replaced by the Central Banking of 2000 under the leadership of Sir Mekere Morauta. The new Act made the Central Bank independent from all other influences and empowered it to set monetary policy based on its expertise. The Bank continues to strive to meet international standards and practices in all aspects of central banking.
The Central Banking Act 2000 outlines the powers, functions and objectives of the Bank. The Bank also administers a range of other legislation that directs its actions in key sectors.
The increase in business activity and the need to house every employee in the same building saw the construction of new premises, now known as "ToRobert Haus." It was named after the first Governor of the Bank and was built at a cost of sixteen million kina (K16,000,000) adjacent to the first building on Douglas Street in Downtown, Port Moresby. The building consisted of eight floors with two below ground level. Construction started in 1988 and was completed in 1991. It was officially opened by then Prime Minister Sir Rabbie Namaliu on 1 November 1991.
Since its establishment the Bank has had eight governors.
The first governor of the Bank was Sir Henry ToRobert, who was appointed in 1973. He was also the longest serving executive of the Bank, serving for twenty years.
Sir Mekere Morauta was appointed the Governor of the Bank after Sir ToRobert and served for fifteen months from 31 July 1993 to 15 September 1994. He was then replaced by Mr. Koiari Tarata who was the Governor from 15 September 1994 to 8 April 1998.
The fourth person appointed as Governor after Mr. Tarata was Mr. John Vulupindi who served for only four months before he was replaced by Mr. Morea Vele. After Mr. Vele vacated the position in 1999, a career central banker, Sir Leonard Wilson Kamit was appointed to the position. His successor, Mr. Loi Bakani took over the position from Sir Wilson Kamit on 9 December 2009 until his retirement in December 2021.
Ms Elizabeth Genia was appointed the first female Governor of the Bank of Papua New Guinea in January 2024.