AMBD introduces facilities to create a strong financial environment

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A man walks past an AMBD Gallery signage. Image: Ridhwan Kamarulzaman

Fitri Shahminan

The Autoriti Monetari Brunei Darussalam (AMBD) today introduced the Overnight Standing Facilities to create a just and efficient financial system and environment in the sultanate.

The facilities consist of ‘Syariah Compliant Funding and Acceptance Facilities’ as well as ‘Conventional Lending and Deposit Facilities’, according to the central bank in a statement announcing the issuance of a notice regarding the introduction of the facilities.

“The introduction of the dual Overnight Standing Facilities seeks to create a level playing field for both the Islamic and conventional banks in Brunei,” AMBD said.

The funding and lending facilities enable banks to obtain Brunei Dollar liquidity from AMBD, against sufficient eligible collateral on an overnight basis, the statement read.

Meanwhile, the acceptance and deposit facilities allow banks to place excess deposits in Brunei Dollars with the central bank on an overnight basis.

The statement added eligible counterparties of the facilities shall consist of licensed banks in Brunei only.

“The Overnight Standing Facilities aim to support effective and efficient liquidity management of the banks and to facilitate the smooth functioning of the financial system,” the statement said.

AMBD said the notice was issued after several rounds of consultations with the Brunei Association of Banks (BAB) on the proposed framework.

In designing the framework of the facilities, AMBD said it ensured instruments and operations in relation to the framework are strictly consistent with the Currency Board principles, signalling its full commitment to the Currency Board Arrangement and the Currency Interchangeability Agreement with Singapore.

The central bank has been taking steps towards creating an environment that encourages the development of a more efficient money market in Brunei, as part of the objectives set out in the Brunei Darussalam Financial Sector Blueprint 2016-2025.

This is also in line with the functions of AMBD as stipulated under the AMBD Order, 2010, to develop and manage the interbank funds system as well as to establish the requirements for its participants.

To obtain more information, public may look into the technical notes of the facilities publised on AMBD’s website at