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ECONOMIC ENVIRONMENT
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The financial sector in Brunei
comprises conventional and Islamic
financial institutions, which offers
general banking products and services
to investment banking and pawn
broking.
There are currently seven banks
operating in the Sultanate and are
located mainly in the Brunei-Muara
district. Baiduri Bank Berhad and Bank
Islam Brunei Darussalam (BIBD) are
the two major local banks. Other banks
which are international establishments
include Standard Chartered Bank
(SCB), Hong Kong and Shanghai
Banking
Corporation
(HSBC),
Maybank, RHB Bank and United
Overseas Bank (UOB). Several other
international banks that also trade
in Brunei are Royal Bank of Canada,
Commerce International Merchant
Bankers and Overseas Chinese
Banking Corporation.
Brunei is home to a robust banking
sector
that
is
also
becoming
increasingly competitive. Both the
local and international banks strive to
provide innovative banking products
and solutions to meet local market
needs.
In addition, excellent customer service
delivering
prompt,
efficient
and
convenient banking services to clients
remains as a priority for many banks.
With the Brunei Government’s vision
to instil a savings culture among
Bruneians, the banking sector has
undergone a significant paradigm
shift from its previous lending-focused
model. Banks now practise a more
responsible lending model offering
banking products and services with
aims to promote savings, investments
and financing.
Various investment products are
available in the market today, ranging
from Unit Trusts to currency-linked
investments in bonds. The Islamic
banking sector also offers its unique
investment
schemes
which
are
compliant with the principles of Islamic
law. Many banks also offer attractive
interest rates across a range of banking
products such as the Current, Savings
and Fixed Deposit accounts.
Home mortgage products also offer
attractive interest rates and benefits
in helping Bruneians own their own
houses.
According to the World Economic
Outlook
Report
2014
by
the
International Monetary Fund (IMF),
Brunei’s capital markets and insurance
industries possess the highest potential
for economic growth. The current
combined market share in terms of
asset size of these industries is about six
per cent of the financial services sector.
BANKING SERVICES IN BRUNEI
Brunei is home to
a robust banking
sector that is
also becoming
increasingly
competitive. Both
the local and
international banks
strive to provide
innovative banking
products and
solutions to meet
local market needs