BRISBANE, July 8 Reuters U.S. and Australian officials said on Monday they were committed to improving financial connectivity in the Pacific, as lenders and policymakers from across the region met to discuss bolstering banking services amid increasing interest from China.

Pacific Island countries are facing challenges as Western banks end longterm relationships with their counterparts in small nations in the region and others look to close operations, limiting access to U.S. dollardenominated bank accounts.

Australian Assistant Treasurer Stephen Jones said Canberra wanted to be the partner of choice in the Pacific, whether in banking or defence.

We would be concerned if there were nations operating within the region whose principle objective was advancing their own national interest as opposed to the interests of the pacific island nations, Jones said on the first day of the twoday Pacific Banking Forum in Brisbane, when asked about Chinese banks stepping into the vacuum.

He declined to say whether China fit that description. Australia and the U.S. are cohosting the forum.

Washington has also boosted efforts to support Pacific Island countries to curb China39;s influence.

We recognise the economic and strategic significance of the Pacific region, and we are committed to deepening our engagement and collaboration with our allies and partners to bolster financial connectivity, investment, and integration, said U.S. Treasury Undersecretary Brian Nelson, who is…