Brunei Dollar (BND) Monetary Framework
In 2017, BDCB introduced the averaging provision to the banks' reserve requirement, also known as Minimum Cash Balance (MCB) requirement, which provide banks flexibility in their liquidity management. BDCB also conducts monetary operations through the issuance of BDCB Islamic Bills (I-Bills) and Overnight Standing Facilities to ensure sufficient liquidity for the smooth functioning of the domestic banking system.
The design of the instruments and operations in relation to the Brunei Dollar (BND) Monetary Framework are strictly consistent with the Currency Board principles to support the monetary policy of the country.
Minimum Cash Balance (MCB)
The MCB requirement is applicable to banks licensed under the Banking Order, 2006 and Islamic Banking Order, 2008.
For more information:
Minimum Cash Balance Notice for Banks
Minimum Cash Balance Notice for Islamic Banks
Overnight Standing Facilities
The Overnight Standing Facilities are fundamental tools for effective and efficient liquidity management for the banks and the development of the domestic money market. The Facilities consist of Syariah-Compliant Funding and Acceptance Facilities, and Conventional Lending and Deposit Facilities.
The Overnight Standing Facilities rates are determined by the Financial and Monetary Stability Committee (FMSC). The Committee meets monthly and is responsible for monitoring the risks present in the global and domestic financial and economic environment, and provides policy recommendations to BDCB's Board of Directors.
For more information:
Overnight Standing Facilities Rates
Conventional Overnight Standing Facilities Notice
Syariah-Compliant Overnight Standing Facilities Notices
Overnight Standing Facilities Technical Notes
BDCB Islamic Bills (BDCB I-Bills)
In 2020, BDCB introduced the BDCB I-Bills Programme which aims to build a benchmark yield curve, facilitate the development of other financial instruments in Brunei Darussalam, and widen the list of available money market instruments for BDCB and the domestic financial sector.
For more information:
BDCB I-Bills Brief Summary
BDCB I-Bills Issuance Calendar
Brunei Government Sukuk Al-Ijarah
BDCB, as the agent to the Government of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam, is responsible for the management and administration of the Brunei Darussalam Government Sukuk Al-Ijarah issuances. The objective of this programme is to develop the Brunei Darussalam Government securities yield curve as a benchmark for corporate sukuk, and provide a safe and liquid investment instrument for domestic financial institutions.
For more information:
Sukuk Al-Ijarah Brief Summary
Sukuk Al-Ijarah Issuance Calendar
