Overview:
The National Development Bank of Palau is set for a leadership change as the board declines to renew CEO David Proctor’s contract, with CFO Karla West appointed acting CEO. The decision follows months of concerns raised by bank employees and discussed during a congressional oversight hearing.
By: L.N. Reklai
KOROR, Palau (August 20, 2026) — The National Development Bank of Palau’s Board of Directors has decided not to renew the contract of President and CEO David Proctor, with Chief Financial Officer Karla West appointed as acting CEO.
NDBP Board Chairman Rhinehart Silas confirmed the decision, saying Proctor’s contract, which expires Aug. 24, 2026, will not be renewed.
Silas said the board made a difficult decision in choosing not to extend Proctor’s contract.
Proctor was appointed president and CEO in 2023. At the time, NDBP said his appointment reflected Palau’s ambition to further strengthen its financial industry to meet the needs of residents and international investors.
The bank also said Proctor’s appointment was part of NDBP’s goal of becoming a leader in the financial industry while serving its customers, community and stakeholders.
The decision comes after concerns were raised earlier this year by NDBP employees about several bank decisions and Proctor’s management of the institution.
In May, NDBP staff wrote to Senate President Hokkons Baules questioning the bank’s decisions involving a new banking system and the removal of unsecured chattel mortgage loans. Employees also raised concerns about Proctor’s treatment of bank staff.
The concerns were later discussed during an oversight hearing involving Senate and House committees and members of the NDBP Board of Directors.
Board members sought to respond to issues raised by NDBP employees in letters sent to members of the national Congress.
During the hearing, one senator said the concerns appeared to originate with the CEO, who was not present to respond to the issues raised by lawmakers and bank employees.
Silas said Proctor was off-island at the time because of a family medical emergency.
The board’s decision not to renew Proctor’s contract now places West in the role of acting CEO as NDBP prepares for a transition in leadership.
Silas did not provide further details about the board’s decision beyond saying it was a difficult one.