Pacific nations boost banking links, financial management, and AIIB partnership

Regional efforts are underway to bolster banking connectivity, enhance public financial management, and deepen development partnerships across the Pacific Islands.

The fifth meeting of the Pacific De-Risking Group, hosted by the Pacific Islands Forum Secretariat (PIFS), convened members and development partners to assess progress in strengthening correspondent banking relationships and overall financial connectivity. Co-chaired by the Governor of the Central Bank of Solomon Islands, Dr. Luke Forau, and the World Bank's Tatiana Proskuryakova, the group reviewed the implementation of the Pacific Correspondent Banking Relationships Roadmap.

This group provides strategic oversight for de-risking initiatives, monitors progress, addresses challenges, and supports Pacific Island countries in finding practical solutions. Key discussion points included a feasibility study for the Pacific Payments Mechanism, engagement with correspondent banking service providers, payment systems, Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) support, and better coordination among development partners.

To support the Pacific Payments Mechanism feasibility study, a Development Partners Working Group was established to ensure assistance is coordinated, practical, and aligned with regional priorities. The Pacific Strengthening Correspondent Banking Relationships Project, supported by the World Bank, aims to maintain Pacific countries' access to secure international banking and payment systems.

In parallel, the second Public Finance Management (PFM) Regional Coordination Mechanism meeting focused on the 2026–2027 work program, building on outcomes from the 2026 Forum Economic Ministers Meeting. Separately, PIFS Secretary General Baron Divavesi Waqa met with AIIB President Zou Jiayi, reaffirming the Forum's commitment to partnerships with multilateral institutions like the AIIB for infrastructure investment, regional connectivity, economic resilience, and private sector development.