Visitors browsing a selection of jewelry at a booth during one of the fairs hosted this year. Image: Ridhwan Kamarulzaman

Autoriti Monetari Brunei Darussalam (AMBD) has revised its inflation forecast for 2019 to the range of 1 to 0 percent, adding that such a forecast would remain at similar levels for 2020.

This was revealed through its latest bi-annual policy statement for the second half of 2019, where AMBD acknowledged the expectation for the global economy to grow by 3 percent in 2019.

The domestic economy, the authority added, has also grown by 2.9 percent year-on-year in the first half of 2019.

AMBD in its policy statement highlighted that the banking industry continues to have a robust capital position, surplus liquid assets, and improved profitability.

In its efforts to progressively implement the Basel Core Principles for Effective Banking Supervision and the Basel II framework, banks have submitted their first Internal Capital Adequacy and Assessment Process (ICAAP) documents in June 2019.

The monetary authority is undertaking a Risk Perception Survey (RPS) among banks for the development of forward-looking data and information.

With the full implementation of risk-based insurance supervision in 2017, AMBD is enhancing the framework and has introduced a profiling tool for insurance companies and Takaful operators.

In line with AMBD’s commitment to strengthen the risk management of insurance companies and Takaful operators in Brunei, the authority has issued requirements and guidance on outsourcing to set standards for sound practices on risk management of material outsourcing arrangements.

AMBD has also issued several guidelines during 2019 including the Guideline on Conducting the Regulated Activity of Giving or Offering Investment Advice in October 2019.

In line with the initiatives identified in the Brunei Darussalam Financial Sector Blueprint 2016-2025 (FSBP), a risk-based supervision framework for the supervision of the capital market intermediaries has been developed.

Another guideline issued was the Guidelines on Product Transparency and Disclosure to financial institutions specifically for banks, finance companies, Takaful operators and insurance companies.

AMBD has additionally issued revised and amended licensing conditions which took effect starting June this year, as part of strengthening compliance of the money changing and money remittance businesses.

The authority is currently reviewing the Notice on Cyber Intrusion and Incident Reporting and Information Technology Risk Management Guidelines to ensure the framework on technology risk management remains relevant to the developments in technology and cyber-security trends in the financial sector.

AMBD will also be establishing the AMBD-Financial Institutions Technology Committee, as an avenue for the financial industry to discuss the opportunities and issues related to the use of technology and align their efforts to the Brunei Darussalam Financial Sector Blueprint 2016-2025 (FSBP).

In efforts towards further developing a more efficient money market in the sultanate, AMBD intends to launch its own programme of Islamic Bills (AMBD I-Bills) in early 2020. The AMBD I-Bills aims to support effective and efficient liquidity management for the banks.

The full version of AMBD Policy Statement 2/2019 can be found on AMBD’s website. For further information and inquiries, members of the public may contact AMBD by calling its hotline at 2388388, or by emailing info@ambd.gov.bn.

The Bruneian | BANDAR SERI BEGAWAN

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