Tongan Bank Challenges National Reserve Bank Decision To Revoke Operating License

Challenge based on claims the Reserve Bank did not follow proper procedures, assured depositors that their savings were secure

NUKU‘ALOFA, Tonga (Matangi Tonga, August 2, 2016) – The Pacific International Commercial Bank (PICB) is challenging last week’s decision made by Tonga’s National Reserve Bank to shut it down.

“We will urgently take legal action against the National Reserve Bank of Tonga for the cancellation of our operating license,” said Mishka Tu'ifua, General Manager and Director of PICB today, 2 August.

Mishka claimed that the Reserve Bank did not follow proper procedures when it decided to revoke PICB’s operating license on 26 July 2016.

She claimed that the NRBT had reactivated a termination notice that it issued on 30 January 2015. She said the termination was cancelled on 2 April 2015 after the PICB submitted a report, pointing out why it was wrong for the Reserve Bank to terminate their operating license.

Yesterday in a statement Mishka assured depositors that their savings were secure and advised that they could withdraw their funds if they wanted to.

For borrowers, she was very thankful for those who had been to the bank during the past few days to repay their loans. She said they would let borrowers know soon how to continue to repay their loans.

The PICB was first opened for business on 7 April 2014, the fifth Commercial Bank to be opened for business in Tonga.

This Chinese-Tongan bank venture was a partnership between a Chinese businessman, and the majority shareholder Jianhua Hu and Princess Pilolevu Tuita. A third shareholder was a Zhang Xueyan.

Matangi Tonga Magazine
Copyright © 2016 Matangi Tonga. All Rights Reserved

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