From Matangi Tonga Magazine, Vol. 15, no. 4, January 2001.

The Westpac Banking Corporation became the major shareholder of the Bank of Tonga on January 4, after it bought the 30% shares of the Bank of Hawai‘i. The Bank of Tonga now has only two shareholders, Westpac holding 60% and the Government of Tonga 40%.

Brian Harris the General Manager of the Bank of Tonga, said that there was an understanding between the two shareholders that government may buy 9% shares from Westpac whenever it wanted to. If this happened government would then hold 49% and Westpac 51%.

As for the allowing members of the public to buy shares in the Bank of Tonga, Brian said that although there was such a policy, it was entirely up to government to decide when they would sell their shares and how many.

Brian said that  Westpac as the major shareholder could insert more capital for the upgrading of computers, and introduce new banking technology to the operation of the Bank to be inline with its world-wide operation. Under this new structure he, as general manager, would become one of the five directors of the bank, a move which he thought would further enhance the operation, “but the main benefactors of this change will be the consumers because of better services,” he said.

Brian did not want to reveal how much Westpac paid  for the shares, but he said that it did not have any impact on Tonga’s Foreign Reserve.