15/10/2014 12:37 PM |
This division consist primarily of licensing, supervision and regulation of banks and finance companies (both Islamic and conventional), offshore banks, money changers and money remittance companies and pawnbrokers.
In fulfilling its mandate, the division administers and enforces the following legislation:-
In discharging its responsibilities in the above regard, it strives to benchmark itself to the relevant international standards such as the Basel Core Principles set by the Basel Committee on Banking Supervision and those of the Islamic Financial Services Board (IFSB).
Regulatory & Supervisory Framework
The objectives of AMBD in respect of financial stability include:
The current legislative framework is comprehensive and is reviewed from time to time, governing both domestic and international financial activities. In addition, AMBD also issues notices and guidelines from time to time to ensure financial soundness and stability. Full details of these, together with the notices and guidelines, are available in the Legislation & Regulations section of this website.
AMBD as the regulator of the financial system compiles aggregate micro-financial soundness indicators on the banking system, as part of its framework to assess financial system stability. In terms of capital requirements, all banks are currently mandated to have a minimum regulatory capital to risk weighted assets ratio and Tier 1 Capital to risk weighted assets ratio at 10% and 5% respectively, which are above the Basel I and Basel II requirements of 8% and 4% respectively.
AMBD has also established a supervision framework to ensure compliance with the above regulations which include the following measures:
Banking System in Brunei Darussalam
Brunei Darussalam’s banking system is characterized by a dual banking system consisting of Islamic banks and conventional banks. The banking system consists of eight banks comprising one Islamic Bank and seven conventional banks, as well as an Islamic Trust Fund which is set up under its own statute. Out of the eight banks, three are international, three regional and two domestic. In addition, there are three licensed finance companies, two are conventional and one is Islamic. The three finance companies are wholly owned subsidiaries of three licensed banks in Brunei Darussalam.
There are four offshore banks operate within the framework of the International Banking Order, 2000. There is only one licensed pawnbroker in Brunei Darussalam.
Basic Criteria for Licensing
Bank (Conventional and
In considering whether to grant a licence, the Authority shall have regard to:-
The Authority shall not grant a licence unless it is satisfied that:-
Head Office outside Brunei Darussalam
Foreign Bank Branches in Brunei Darussalam
(Both Conventional and Islamis banks)
In considering any application for a licence the Authority may require to be satisfied as to:-
Basic Criteria to apply licensing for pawnbrokers in Brunei Darussalam
Money Changing & Remittance
LICENCE FEES (ANNUAL)
Headquarters or principal branch of a licensed bank
Branch of a licensed local bank and sub-branch of a licensed foreign bank
Automated Teller Machine
(Off-premises of a licensed bank)
MONEY – REMITTANCE BUSINESS
MONEY – CHANGERS
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