Last modified: 17/01/2014 01:58 AM
In cognizant with the country’s Brunei Islamic Monarchy philosophy, Islamic banking and finance has become one of the primary sectors of focus in the financial services industry. At present, the Islamic financial services sector covers banking, takaful, asset management, mutual funds and trusts services.
Islamic Banking was first introduced in Brunei Darussalam in the early 1990s and has since seen tremendous growth. In 2010, it held a significant role in Brunei Darussalam’s banking industry with total assets of B$6.36 billion and deposits totalling B$5.167 billion which accounted for 37% and 34.6% of the total market share. Similarly the takaful industry has been able to penetrate the insurance market with a sizeable market share of 42% (gross premiums) and 20% (assets) as of the end of 2010.
In 2006, the Government of Brunei Darussalam launched the Short Term Sukuk Al-Ijarah Money Market Program. The key objective of the inaugural sukuk issuance was to contribute to the early development of the the capital market. The issuance also served as a liquidity tool in regulating the banking industry. As of 2011, a total of B$3.651 billion of sukuk have been issued from Series 1 to Series 68 which were of 91-days and 364-days tenors.
Further to this, the national Syariah Financial Supervisory Board was established in 2006 to enhance the Syariah governance and supervision as well as stimulating the growth of the industry. The Board is entrusted with the duty of ascertaining that all Islamic products are in accordance with Syariah Law before they are allowed to be distributed.
Copyright © Autoriti Monetari Brunei Darussalam
All Rights Reserved