Western Samoa

Banks battle in Western Samoa

From an Apia correspondent There is at present only one bank in Western Samoa, the Bank of Western Samoa, which up to January of this year was 55 per cent owned by the Bank of New Zealand and 45 per cent by the Western Samoa Government.

Towards January’s end, however, a new agreement resulted in an equal partnership between the gov ernment and the bank, with equal representatives on the board of direc tors. The move to increase the gov ernment’s shares was long overdue.

The government, as well as the people, was becoming more and more nationalistic in feeling and there is a growing suspicion of things palagi (European). Outsiders, however up right, are always suspect. Discussion with ministers and top public servants, not least of all with politicians and members of the community, reflects this growing nationalistic feeling.

The bank was no exception to this dislike of things palagi. Since inde pendence in 1962, there had been increased criticism of its operations and the ratio of shareholding. Some politicians felt it a disgrace that a bank which carried the name of Western Samoa was owned on a najority basis by a foreign corpora ion—the Bank of New Zealand.

Others felt the Bank of Western >amoa was not being liberal enough n the granting of loans for develop nent or for personal purposes. And here was a demand for the intro luction of new banks.

On the other hand, the Bank of Vestern Samoa replied that many amoans had broken their word to be bank and become delinquent in ayment of their accounts, and that lany requests for loans were merely 3r the sake of perpetuating non roductive Samoan customs. As bank lanager Warwick Lancaster said, Our policy is essentially a conser ative one.”

Be that as it may, the government becoming more involved in the ank’s operations and is making its resence felt. Though the Bank of ew Zealand has offered the govern ient up to 100 per cent sharehold g, the government has satisfied it 'll with a mere 50 per cent but it ill continue to increase its shares 1 it sees fit. At the moment it is nte content to encourage the New ✓slanders because of the many snefits that can be obtained from sociation with the Bank of New Jaland.

The bank s capital will be doubled from its present SWSSOO,OOO and “ inc :!'f as f, of i ssu ed capital of S 100,000 will allow it to further expand its term-lending activities and me range of banking facilities offered. 1 he Minister of Finance, Tofa Tuatagaloa Siaosi, promised that the bank would have a more expansive lending policy rn, , „ There are also unconfirmed reports of the introduction of another commercial bank. The bank rumoured to be the one is an American one, First National City Bank.

But it is also known that the Bank

of Hawaii and a few others including Japanese ones may be interested in establishing themselves here. In fact, a Japanese concern some years ago planned to set up a bank here but plans somehow went amiss and the bank never materialised f ... 4 • , Bank ? f f u e r st ? rn Samoa has glven long and faithful service to the government and people of Western Samoa—but the question now re mains—could the public interest be better served by more banks? This is being hotly debated in both busi ness and government circles and it is believed the battle is fierce.