Solomon Islands joins regional initiative to safeguard financial lifelines as Pacific Banking Project goes live
Solomon Islands will maintain uninterrupted access to the global financial system through its participation in a World Bank project to strengthen correspondent banking relationships in the Pacific region.
Solomon Islands joins Fiji, Kiribati, Republic of the Marshall Islands, Samoa, Tonga, Tuvalu, and Vanuatu, and the Pacific Islands Forum, in this regional project.
With this expansion, Solomon Islands will now benefit from both temporary correspondent banking support in the event of access loss and technical assistance to improve compliance, payment systems, and financial infrastructure.
It safeguards the ability for countries like Solomon Islands to send and receive money internationally which is essential for trade, investment, disaster relief, and remittances. Between 2011 and 2022, Solomon Islands saw a 57 percent reduction in available correspondent banking services, putting it at risk of financial disconnection.
“For Solomon Islands, this project is about more than banking—it’s about ensuring our people, businesses, and government can remain connected to the global economy.
“Whether it’s families receiving remittances, exporters accessing trade finance, or agencies coordinating disaster relief, secure financial access is fundamental,” Solomon Islands Minister of Finance and Treasury, Harry Kuma said.
With over 5 percent of the country’s GDP now tied to remittance inflows—a figure expected to rise with expanding labor mobility programs, Solomon Islands stand to benefit significantly from improved cross-border financial systems.
The country is also looking to grow its agricultural exports, making trade facilitation even more important for long-term economic development.
By joining this regional initiative, Solomon Islands will participate in a comprehensive feasibility study on a Pacific Payments Mechanism—designed to reduce costs and improve the reliability of cross-border payments, and ultimately deliver a more secure, inclusive financial future for the region.
“This project is a truly Pacific solution to a shared challenge, and it’s now even stronger with Solomon Islands on board.
“With the support of partners and continued regional commitment, we’re on track to deliver secure, inclusive, and lasting financial access for all Pacific people,” Secretary General of the Pacific Islands Forum Secretariat, Baron Waqa said.
The regional project, approved in August 2024 and now fully operational, was announced by World Bank President Ajay Banga during his first visit to the Pacific. It is implemented by the Pacific Islands Forum Secretariat and financed through the International Development Association (IDA).
The project provides both immediate solutions, such as a standby facility for emergency correspondent banking services, and long-term reforms to support anti-money laundering efforts and regulatory harmonization across the region.
The project is also supported by Australia and New Zealand through the PNG and Pacific Islands Umbrella Facility, and by Japan, the UK, and the US through the CBR Multi Donor Trust Fund.
“This expansion and achievement of effectiveness is a significant milestone for the Pacific CBR project.
“It shows the strength of Pacific collaboration and that regional solutions are both essential and well-suited to keeping financial lifelines open. We are proud to support this effort, bringing together countries and partners, including additional support from Australia, Japan, New Zealand, the UK, and the US, and providing technical experts to support Pacific nations to stay connected to the global economy,” Stephen N. Ndegwa, World Bank Country Director for the Pacific and Papua New Guinea said.
Under the additional financing package, Solomon Islands will receive US$9 million split evenly between grants and credits to support national and regional activities.
These include upgrades to payment system oversight, regulatory alignment, and the collection of critical financial access data, including gender-disaggregated information that will help shape inclusive financial policies.
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World Bank statement