Licensing Criteria
The Banking Order, 2006 and Islamic Banking Order, 2008 requires any companies to apply for a licence to conduct any banking activities, while the Finance Companies Act, Chapter 89 requires any companies to apply for a licence to conduct any financing business. Any company or individual carrying out any banking business or financing business without a valid licence is considered as breaching the law and may be subject to penalties.
Licensing Requirements
- High reputation in the financial community;
- Directors, controllers and senior managers of the bank must be fit and proper;
- Must have minimum paid up capital as follows:
- Banks with a Head Office in Brunei Darussalam - Minimum BND100 million (conventional and Islamic)
- Banks with a Head Office outside Brunei Darussalam - Minimum BND1,000 million (conventional) and BND500 million (Islamic)
- Finance companies (Head Office) - Minimum BND25 million
- Foreign bank branches - Minimum of BND30 million of net head office funds in Brunei Darussalam. For more information, please refer to the Notice on Forms of Assets Approved by the Authority.
- Islamic banks need to establish a Syariah Advisory Body, comprising at least three Islamic religious scholars where two are citizens of Brunei Darussalam.
Relevant Fees
| Full Banking | License Fees (Annual) |
|---|---|
| Headquarters or principal branch of a licensed bank | BND50,000 |
| Branch of a licensed local bank and sub-branch of a licensed foreign bank | BND10,000 |
| Automated Teller Machine (Off premises of a licensed bank) | BND3,000 each |
| Finance Companies | |
| Head Office | BND30,000 |
| Branch | BND5,000 |
| Fee | Local Bank | Foreign Bank |
|---|---|---|
|
Credit Bureau Joining Fee Annual Fee |
BND10,000 BND30,000 |
BND10,000 BND30,000 |
|
Real Time Gross Settlement (RTGS) Joining Fee Annual Fee |
BND10,000 BND10,000 |
BND10,000 BND10,000 |
|
Automated Clearing House (ACH) Joining Fee Annual Fee |
BND10,000 BND10,000 |
BND10,000 BND10,000 |
|
Central Securities Depository (CSD) Joining Fee Annual Fee |
BND10,000 BND4,000 |
BND10,000 BND4,000 |
Necessary Documents
Interested applicants are required to submit the following documentations:
- Completed application form;
- Original letter from the home country Supervisory Authority (as applicable) approving the establishment of a branch or subsidiary in Brunei Darussalam;
- Certified copy of Memorandum of Association and Articles of Association; Undertaking from the bank to inform of any material adverse developments including breach of legal and prudential requirements;
- Annual Audited Financial Statements of the bank for the last three years, and additionally a Statement of Financial Position, Statement of Profit and Loss and Other Comprehensive Income dated not more than three months prior to the date of the application;
- Annual Reports of the bank's holding company or shareholders with controlling interest for the latest financial year;
- Proposed structure of operations in Brunei Darussalam;
- Business Plan (including type of business, staff support, pro-forma financial data and financial projections for first five years of operation); and
- For Islamic banks, approval from Syariah Financial Supervisory Board for any Islamic financial products and services to ensure they are not contrary to Hukum Syara'.
All completed applications, including necessary documentations, with the application fees should be submitted to:
Deputy Managing Director (Regulatory and Supervision)Brunei Darussalam Central Bank,
Level 7 Ministry of Finance and Economy Building
Commonwealth Drive
Bandar Seri Begawan, BB3910
Brunei Darussalam
You may also bankingpolicy[at]bdcb[dot]gov[dot]bn directly for any general licensing enquiries on the banking sector and finance companies.