Pacific International Commercial Bank

RNZ reports last week the Tonga National Reserve Bank revoked the licence of the bank which is a partnership between Chinese shareholders and Princess Pilolevu Tuita.

Matangi Tonga reports the commercial bank's general manager Mishka Tu'ifua said it will urgently take legal action against the Reserve Bank over the cancellation because proper procedures hadn't been followed.

According to the website, Mishka Tu'ifua said the Reserve Bank had reactivated a termination notice that it issued in January last year which was subsequently cancelled.

The Governor of the Reserve Bank, Ngongo Kioa, told Matangi Tonga the Pacific International Commercial Bank failed to honour a business plan, and had not submitted an audit report.

In the unprecedented move, the Reserve said the bank had not honoured its promise to provide a niche product that would bring $100 million US dollars into the country for the purpose of loans.

Dr Kioa said there were warnings issued in 2014 and the bank received a final warning 14 months ago.