Brunei’s central bank confident of low inflation rate of two to three per cent for 2022

BANDAR SERI BEGAWAN, July 23 (Borneo Bulletin/ANN): Regardless of the worldwide inflation forecast which is anticipated to stay elevated, mixed with disruptions on world provide chains that are prone to persist within the near-term, the Brunei Darussalam Central Financial institution (BDCB) expects its impacts on the Sultanate’s total inflation to be low given the tightening of Financial Authority of Singapore’s (MAS) financial coverage thrice to this point within the first seven months of the 12 months.

BDCB’s inflation forecast for 2022 is anticipated to be within the vary of two to 3 per cent.

The BDCB recorded a progress within the monetary sector complete belongings of seven.9 per cent year-on-year with complete asset worth of BND23.9 billion as of the primary quarter (Q1) of 2022.

In line with the BDCB’s first semi-annual coverage assertion revealed yesterday, the Islamic finance sector held 58 per cent with BND13.9 billion, whereas deposit-taking establishments made up 92 per cent of the full monetary sector belongings with an asset base of BND22 billion.

In its coverage assertion, BDCB famous that the Worldwide Financial Fund (IMF) has revised down its 2022 world progress forecast from 4.4 to three.6 per cent attributable to spillover results from Russia’s invasion of Ukraine, akin to provide shocks and better inflation. In the meantime, the home financial system contracted by 1.6 per cent in 2021.

The banking business continues to have a sturdy capital place with an combination Capital Adequacy Ratio of 20.9 per cent as of Q1 2022.

However, attributable to heightened uncertainties related to the COVID-19 pandemic, in addition to the nonetheless comparatively low world curiosity/revenue charges surroundings, profitability of the banking business has additionally declined.

The short-term regulatory flexibility to banks and finance corporations has ceased after June 30, with the COVID-19 restrictions being lifted with companies and people beginning to get better from the impression of the pandemic.

In the meantime, the waiver of charges and fees (excluding third get together fees) for on-line native interbank fund transfers by way of the real-time gross settlement (RTGS) system and automatic clearing home (ACF) has been prolonged till December 31.

To additional be certain that vital infrastructure of the monetary sector meets worldwide requirements, BDCB issued Pointers on Expertise Threat Administration and Pointers on IT Third Occasion Threat Administration to all monetary establishments, in step with the Monetary Sector Blueprint’s (2016-2025) strategic purpose beneath Pillar III.

BDCB additionally issued a discover on Educational Qualification and Work Expertise Requirement for Capital Markets Companies Consultant’s Licence (CMSRL) to enhance the extent of professionalism throughout the monetary sector, and spot on software course of and necessities of investment-linked insurance coverage enterprise for insurance coverage corporations to boost the governance of this enterprise enterprise. – Borneo Bulletin/ANN