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Ministry of Finance
COMMERCIAL BANKS
Market Structure
The Banking System in Brunei Darussalam comprises of
commercial banks, which play an important role in Brunei financial sector. Out of 9 banks presently
licensed to conduct businesses within the country, 6 are foreign owned and represented by
branch operations.
- The only banking institution which provides Islamic banking
services is the Islamic Bank of Brunei Berhad which was officially launched on 13 January
1993 giving opportunities and fair options for the public to choose. This also helps to
enhance the financial sector by creating fair competition among the other conventional
financial institutions.
Bank
Services
The commercial banks provide full banking services
as follows:
- Accepting Deposits
- Provision of Loans
- Issuing Bank Guarantee
- Fund Management
- Issuing Letter of Credit
- Money Changer Management
Enactment
Regulation
- Annual Licence Fees for both local and foreign banks are :-
- Head Office - B$50,000
- Branch - B$10,000
- Automatic Teller Machine (ATM) (off-site) - B$3000
- All banks are required to submit the following financial
returns:-
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- Direction of Lending for all banking operations in Brunei
Darussalam
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Quarterly |
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- Consolidated monthly statement of Assets and Liabilities
for all banking operations in Brunei Darussalam
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Monthly |
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- Appendix II. a Schedule (Reserve Requirement)
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Monthly |
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- Appendix III Schedule (Statement of Assets and Liabilities)
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Monthly |
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- Capital Adequacy Computation
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Monthly |
Supervision
Monitoring of commercial banks:-
- To ensure that banks are run in the best interest of the public and the depositors.
- At present only conducts off-site supervision by analysing the financial returns of the
banks.
- Major focus of supervision are:-
- Investment
- Provision
- State of Assets
- Administration Quality
- Awareness towards Financial Acts and Regulations
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