Find Banking and Financial Services expertise in Kiribati
As one of the least developed nations in the Pacific, Kiribati has a small financial system which is closely tied to Australia’s financial sector. There is only one commercial bank – the Bank of Kiribati, a joint-partnership between the Government of Kiribati, which owns 25%, and the Australia and New Zealand Banking Group Limited (ANZ), which owns the other 75% since its purchase in 2001. ANZ’s activities also include tracking foreign exchange reserves and domestic currency demand – the country uses the Australian dollar as its domestic currency. The bank, which provides central and retail banking operations, has four branches. The nation also has the small Development Bank of Kiribati, which generally lends to small businesses. However, in addition to these formal institutions, there is exists a loose network of ‘village banks’ that serve as an informal banking sector and provide some microfinance. Outside of banking there exists the Kiribati Provident Fund, which invests in offshore bonds and stocks in order to fund the government pension scheme.
Regulation of Financial Services
There is no central bank or national currency in Kiribati, utilising instead the Australian dollar, and its regulatory environment is considered to be quite basic. The authorities do not buy or sell foreign exchange. The government ministry responsible for the sector is the Ministry of Finance and Economic Development.
Development of Financial Services
The World Bank’s Ease of Doing Business Index ranked Kiribati 159th in the world (out of 183 countries) for getting credit, ranking 21st out of 23 East Asian and Pacific nations. In relation to protecting investors it was placed at 46th in the world, a stronger position in relation to other Pacific nations, ranking alongside Solomon Islands, Fiji and Papua New Guinea.
|Banking and Financial Services organisations in Kiribati|
|Development Bank of Kiribati||