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…
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…
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…
With oil and gas prices currently experiencing a sustained low, the Sultanate’s economy has been facing some challenging times. Declines in GDP and a shrinking of government revenues and expenditures have also affected the banking sector, as consumers and businesses act more cautiously and the need for project financing dwindles. Yet the Sultanate’s banking sector is also seen by many as the key…
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.…
Brunei Darussalam made headlines in April 2016 with the announcement of several sukuk (Islamic bond) offerings ahead of the launch of a standalone stock exchange in the Sultanate. Efforts to expand the scope of the financial sector are aimed at ensuring a greater diversity of public and private sector financing, specifically in support of businesses and infrastructure projects. A roadmap of financial…
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 year 2016 marks the first year of operation for the ASEAN Economic Community (AEC), while it is also an important milestone in the creation of another, even larger international trading group, the Trans-Pacific Partnership (TPP). The Sultanate has been a key supporter of both groupings, as well as a long-time member of another regional organisation, the Asia Pacific Economic Cooperation. This dense…