On how conventional banks are integrating digital solutions How would you assess the potential of digital banking to boost financial inclusion in developing economies? MICHEAL GORRIZ: In Africa, where Standard Chartered opened eight digital banks in 2018-19, the cost to serve is a crucial determining factor when offering banking services. A large part of the continent is underbanked primarily…
The increasing focus on economic diversification and the ongoing growth of non-energy sectors bodes well for the economy, as does further exploration and improved efficiency in the oil and gas industry. Economy: Driving Diversification - Brunei Darussalam has launched a series of reforms in recent years aimed at accelerating development of non-energy sectors, including high-tech, agricultural…
Interview:Javed Ahmad Do you expect an increased use of Islamic financial services in the short term? JAVED AHMAD: Five years ago, we projected that the Brunei banking industry would become predominantly Islamic, and at that time many people asked me if we were ambitious. But the reality is that we are nearly there today. The majority of Brunei’s population is Muslim, but this does not mean…
With a strong Islamic banking sector, a growing Islamic insurance (takaful), industry and an expanding market for Islamic bonds (sukuk), Brunei Darussalam has recently been drawing much attention internationally as a centre for Islamic financial services (IFS). Indeed, Brunei Darussalam is now amongst the nine countries worldwide where Islamic finance has reached systemic importance – places where…
Consisting of both Islamic and conventional insurers and insurance products, the Sultanate’s insurance sector has held steady in recent times, despite strong external pressures on Brunei Darussalam’s economy. Non-life remains a dynamic segment, with Islamic takaful products making up the bulk of these general insurance premiums. This pattern looks set to continue in the year ahead, too, with the…
Interview:Ajay Kanwal What do you see as the distinguishing characteristics of the banking landscape in South Asia? AJAY KANWAL: Sentiment in South Asia continues to be very positive as GDP growth, credit expansion, consumer confidence and public infrastructure spending increases across the region. In its role as a financial intermediary, banks have played a pivotal role in enabling this growth.…
Interview:Pierre Imhof Does the local banking sector have opportunities to finance large-scale projects? PIERRE IMHOF: Large infrastructure projects, especially oil- and gas-related projects like building a refinery, require a tremendous amount of financing, much more than any individual bank can provide. That is true all around the world, not only in Brunei Darussalam. Special-purpose vehicles,…
The Sultanate’s small but solid banking sector has been going through some significant changes in recent times. Consolidation has led to fewer lenders, a process that is likely to continue, while at the same time those banks that do remain are some of the best resourced in the region. Indeed, Brunei Darussalam’s banks have high levels of liquidity, good capital adequacy ratios (CAR) and well-managed…
Interview:Yusof bin Haji Abdul Rahman How can Brunei Darussalam’s economy best take advantage of the upcoming establishment of a local stock exchange? YUSOF BIN HAJI ABDUL RAHMAN: The establishment of a stock exchange will enhance financial industry activity in Brunei Darussalam and increase the contribution of financial services to GDP, as per the Wawasan Brunei 2035 (Brunei Vision 2035).…
Interview:Osman Jair How have standardisation efforts affected the industry, including for takaful (Islamic insurance)? OSMAN JAIR: One of the primary objectives is to implement equal high-level standards across the ASEAN countries, taking as examples the most modern and sophisticated markets such as Singapore and Malaysia. BITA and the Monetary Authority of Brunei Darussalam (Autoriti Monetari…