U.S. and Australian officials announced on Monday their commitment to enhancing financial connectivity in the Pacific, as lenders and policymakers gathered to address banking challenges amid rising Chinese interest. Pacific Island nations face difficulties due to Western banks withdrawing long-term relationships and closing operations, reducing access to U.S. dollar-denominated accounts.
Australian Assistant Treasurer Stephen Jones emphasized Canberra’s desire to be the preferred partner in the Pacific for banking and defense. “We would be concerned if there were nations operating within the region whose principal objective was advancing their own national interest as opposed to the interests of the Pacific Island nations,” Jones stated at the Pacific Banking Forum in Brisbane when questioned about Chinese banks filling the gap.