Cabinet has approved a new business model for the revitalization and recapitalization of the former Development Bank of Solomon Islands (DBSI).
The Cabinet Sub-Committee on DBSI had submitted a report on the proposed business model last Thursday 20th April which was deliberated on and eventually approved.
The report which was a culmination of extensive international and national consultations has carefully taken into consideration issues that have caused the failure of the bank in the past.
It is anticipated that the proposed model will compliment the changes in the financial market to meet the financial needs of the domestic economy and rural population.
As such, the new model which also makes provision for a potential Public Private Partnership (PPP) Joint Venture, is arguably home grown and suitable to bolster access to domestic finances and to expand the financial market locally for Solomon Islanders.
A cost assessment will be carried out on how much capital is estimated for the Bank to be fully operational. The other task is to finalize legal amendments to the principle Act and other related legislations as required.
Other immediate priorities for the Cabinet Sub-Committee are to complete the costing and present the required amendments at the next sitting of Parliament.
A National awareness and consultation programme on the amendments will be conducted throughout the country over the next three months.
-Gov’t Communication Unit