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Bill Would Require Foreign-Owned Banks To Revinest 20 Percent

Friday: August 08, 2008

(Palau Horizon)

Palau national lawmakers are considering a bill that would require foreign-owned banks to reinvest 20 percent of locally-generated revenues in the local market, the Palau Horizon reports.

The measure has passed the House of Delegates and is now before the Senate, where it has passed on first reading. The legislation is designed to stimulate Palau’s economy.

If the bill is approved and becomes law, it would affect the Palau operations of Bank of Guam, Bank of Hawaii, Asia Pacific Commercial Bank, Bank Pacific, First Commercial Bank and Palau Construction Bank.

There are two locally-owned banks in Palau, the government-owned National Development Bank of Palau and privately-held First Fidelity Bank.

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