Find Banking and Financial Services expertise in Brunei Darussalam
Brunei Darussalam possesses around eight commercial banks, in addition to the Development Bank of Brunei. Two are native to Brunei: the Baiduri Bank Berhad and the Islamic Bank of Brunei Berhad. The others are all international players, including the likes of Citibank, Standard Chartered and Hong Kong Bank. Since the early 1990s Islamic banking facilities have been provided through the Islamic Bank of Brunei and Tabung Amanah Islam Brunei, whilst other banks offer conventional banking practices. Additionally the financial system includes a number of locally incorporated and international finance and insurance companies. Non-banking financial institutions include bureaus de change, remittance companies, security dealers, insurance companies, employees’ trust funds and Islamic trust funds.
Regulation of Financial Services
As there is no central bank in Brunei, the banking sector is regulated by the Ministry of Finance. This occurs via the Financial Institutions Division through the use of the Banking Acts and the Finance Company Act. It is the authorised agency to issue licenses and administer the Act for financial businesses. Brunei Currency Board (BCB) has the sole right to manage and issue currency notes and coins in the country and maintain currency inter-changeability (fixed at par) with Singapore. There are no restrictions on the importation of capital from any country, nor restrictions on overseas remittances of capitals or profits. Regulatory functions are in addition under the jurisdiction of the Department of Financial Services and the Brunei Investment Agency. The Islamic financial service sector operates under a different structure of corporate governance than that used in conventional banking. In the World Economic Forum’s Global Competitiveness Report (2012-13) Brunei ranked 52nd in the world (out of 144 countries) for the soundness of its banks.
Development of Financial Services
According to the World Economic Global Report (2012-2013) Brunei ranked and a relatively high 29th for the ease of access to loans, placing it above developed countries Austria and France. For availability and affordability of financial services it ranked 57th and 45th respectively in the world achieving the scores above the world mean scores. However, in relation to financing through local equity market it placed 125th reflecting the absence of a stock market in the country. In the 2011 World Bank’s Ease of Doing Business Index Brunei placed 126th in the world (out of 183 countries) for getting credit. In relation to protecting investors it placed 122nd, above its Asian counterparts Phillippines and Timor-Leste.
|Banking and Financial Services organisations in Brunei Darussalam|
|Bank Islam Brunei Darussalam Berhad||