The Manu’a island group has been without any type of financial institution for many years and the government plans to address that void by setting up a branch of its charter bank on Ta’u island later this year, says American Samoa Development Authority board members during a House hearing.

The board members also confirmed that the charter bank would take over Bank of Hawaii’s former and current locations.

During last week’s House committee hearing with members of the ASEDA board, on an administration bill to set up the Office of Financial Institutions, lawmakers from the island group raised questions regarding banking needs for Manu’a.

Rep. Vesi Talalelei Fautanu says that with the government working on the Charter Bank, there should also be a branch for Manu’a, because any developments for the benefit of residents of Tutuila should also be made available for Manu’a.

He says residents in Manu’a have raised the important question — when will a bank be established in Manu’a. He said it’s been more than 10 years since a bank has been in Manu’a and a financial institution is needed there to address banking needs of Manu’a residents.

Vesi’s statement was echoed by House Vice Speaker Fetu Fetui Jr., who is also a Manu’a lawmaker, saying that there is a need to have a bank to serve banking needs of Manu’a, which has been without a bank for so long.

ASEDA board member, Attorney General Talauega Eleasalo Ale explained that plans at this point for locations of the charter bank are that operations will start out at the former BoH one-story building at the Tafuna Industrial Park.

He says the government is looking at June to open this branch and then later on, the second branch will open up at the current BoH location on the ground floor of the Centennial Building in Utulei.

Once the set up of bank branches on Tutuila is in place, the third branch will be at Faleasao village in Manu’a by the end of the year, he said, adding that it has been difficult for private banks to set up in Manu’a with the last one being ANZ Amerika Samoa Bank.

Responding to a committee question, Talauega said the government’s goal is for the Charter Bank to serve the community’s banking needs but not to make a profit.

ASEDA board member, ASG Treasurer Uelinitone Tonumaipea supported Talauega’s comments and added that there is also a need to set up a branch on Aunu’u but it all depends on a recommendation from the governor.

Several lawmakers urged ASEDA board to make sure all necessary steps are taken to ensure the success of the Charter Bank.

Because there is no bank in Manu’a residents usually travel to Tutuila for their banking needs. For those working in government, the Treasury Department dispatches a team to Manu’a to take the payroll and cash checks for ASG employees in the island group.