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ISLAMIC FINANCE IN BRUNEI: Investment Agency

Posted by Connie R. Aponte on February 25, 2014 in Finance |

Investment Agency

In the same year (2010), it was reported that Brunei Investment Agency is investing in Fajr Capital5, a Dubai-based investment firm together with other leading institutions including Khazanah NasionalBerhad, the sovereign fund of Malaysia. The investment firm have a reported funding of an initial $700 million and will focus primarily in investment in financial services in key Muslim markets including Brunei to develop the Islamic financial industry

One year later, in 2011, the Monetary Authority of Brunei Darussalam is established. It is formally known as Autoriti Monetari Brunei Darussalam (AMBD). AMBD is a statutory body, acting as the central bank of Brunei Darussalam which undertakes several core functions, chief of which is the formulation and implementation of monetary policies, the regulation and supervision of financial institutions as well as currency management. Four divisions previously under the Ministry of Finance merged to form AMBD, namely:-

• The Financial Institutions Division or FID

• The Brunei Currency and Monetary Board or BCMB

• The Brunei International Financial Center or BIFC

• Part of the Research and International Division or RID

At year-end 2012, Bruneian Islamic finance industry is already in the right track. BIBD’s assets stood in excess of B$ 6 billion, with a net profit after Zakat and taxation of B$ 119 million. With a Group tier 1 capital of above B$ 1,025 million and an adequacy ratio of 25.7%, BIBD has significant capacity to expand its business. BIBD, headquartered in Bandar Seri Begawan, have fourteen branches at strategic locations in Brunei’s four districts, and has the largest network of ATMs in the country. BIBD leads the Brunei market in assets, financings and deposits.It is also the preferred payroll bank for Government employees.

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