This chapter examines the trends in the financial sector development of Brunei Darussalam during the 2014–2018 period based on 24 indicators measuring depth/intermediation, financial access and financial inclusion and efficiency. It analyses these indicators in comparison with its peers among Association of Southeast Asian Nations (ASEAN) and Gulf Cooperation Council (GCC) countries. It also discusses the major prospects and challenges faced by the financial sector and provides salient policy recommendations. As part of the processes of globalisation and regional integration, the financial sector in Asia has also experienced increased integration and flows of cross-border funds. The financial sector in Brunei is at a developmental stage, though it is institutionally strong with the presence of both Islamic and conventional banks and other financial institutions. Brunei Darussalam Central Bank is slowly working to create a fully functional capital market, a must in order to compete with regional financial markets. Launched in 2016, the Financial Sector Blueprint 2016–2025 provides a roadmap and strategic framework to develop Brunei’s financial services sector into one of Asia’s most competitive and innovative hubs. The successful implementation of the roadmap will help achieve the objectives of Wawasan Brunei 2035 (Brunei Vision 2013), the country’s overarching development strategy, to diversify the economy. The chapter argues that the Regional Comprehensive Economic Partnership (RCEP) agreement will further enhance economic integration and the growth of the region, including the financial sectors of the participating member countries such as Brunei.

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Financial Sector Development in Brunei Darussalam: Trends, Prospects and Challenges

  • Biswa Nath Bhattacharyay

摘要

This chapter examines the trends in the financial sector development of Brunei Darussalam during the 2014–2018 period based on 24 indicators measuring depth/intermediation, financial access and financial inclusion and efficiency. It analyses these indicators in comparison with its peers among Association of Southeast Asian Nations (ASEAN) and Gulf Cooperation Council (GCC) countries. It also discusses the major prospects and challenges faced by the financial sector and provides salient policy recommendations. As part of the processes of globalisation and regional integration, the financial sector in Asia has also experienced increased integration and flows of cross-border funds. The financial sector in Brunei is at a developmental stage, though it is institutionally strong with the presence of both Islamic and conventional banks and other financial institutions. Brunei Darussalam Central Bank is slowly working to create a fully functional capital market, a must in order to compete with regional financial markets. Launched in 2016, the Financial Sector Blueprint 2016–2025 provides a roadmap and strategic framework to develop Brunei’s financial services sector into one of Asia’s most competitive and innovative hubs. The successful implementation of the roadmap will help achieve the objectives of Wawasan Brunei 2035 (Brunei Vision 2013), the country’s overarching development strategy, to diversify the economy. The chapter argues that the Regional Comprehensive Economic Partnership (RCEP) agreement will further enhance economic integration and the growth of the region, including the financial sectors of the participating member countries such as Brunei.