Reserve Bank says it is keeping the kingdom’s economy safe as TDB protests at  police raid

The Reserve Bank issued the statement after the Tonga Development Bank (TDB) issued a statement defending itself after its CEO was sacked and police raided its offices.

Tonga Development Bank. Photo/Kalino Lātū (Kaniva Tonga)

“We wish to assure the public that the NRBT remains committed to maintaining a strong and stable banking system in the country, stabilising the price of goods and services, managing our foreign reserves and exchange rates, for the benefit and safety of its customers and the Tongan economy,” the Reserve Bank said.

As Kaniva News reported yesterday the Reserve Bank accused the Tonga Development Bank of endangering the economy.

It said the Development Bank had behaved imprudently.

“One of the primary functions of the NRBT is to regulate and supervise banks and to ensure that they promote and conduct sound and safe banking practices,” the Reserve Bank said.

“The NRBT is also responsible for keeping the prices of goods and services stable and inflation low, managing of the foreign reserves and exchange rates and combating money laundering.”

The Reserve Bank said earlier the TDB was conducting unsafe and unsound banking practices which could threaten the financial system.

Police raided the Development Bank on May 24.

Polie said they were responding to a complaint about an alleged breach of the Banking Act.

In turn, the Reserve Bank said it was taking legal action against the police.

The National Reserve Bank has permanently banned Development Bank CEO ‘Emeline Tuita from holding any position with the TDB.

The Reserve Bank also wants to remove the Development Bank’s chairman, Peni Vea.

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