THE Central Bank of Solomon Islands (CBSI) Board today morning (20 June 2016) granted an interim license to Bred Bank (Vanuatu) Limited to establish a branch and carry out banking business in the country.
Bred (Solomon) Limited is expected to become the country’s next major financial institution and the fourth commercial bank to be in operation later this year or by early 2017, provided it meets all the interim licensing requirements and conditions as set under the Financial Institutions Act.
In a letter addressed to Bred (Vanuatu) Limited and signed by Central Bank Governor, Mr. Denton Rarawa, and CBSI Board Director, Sir Thomas Chan, on 27th of May, 2016, CBSI granted the interim license in accordance with Section 5 of the Financial Institutions Act 1998 (as amended). The new bank must meet certain conditions during the 12 month interim licensing period.
CBSI Directors, when deliberating on the application, noted that competition in the financial sector is good for the country and the economy because it will help elevate the standard of banking and customer services, encourage product and services innovation, enhance institutional efficiency, promote innovation in banking services delivery channels and access points, lift customer banking experience and pull costs down.
The Directors also noted that BRED Bank is a reputable bank and that its entry into Solomon Islands will lead to transfer of technical skills and knowledge to Solomon Islands economy; provide employment to Solomon Islanders both at the managerial and clerical level; provide direct and indirect taxation revenues to general government and municipal authorities; and provide Solomon Islands consumers a unique and distinctly European banking experience.
Under the Interim License, Bred (Solomon) Limited need to establish its banking infrastructures and equipment and open for business within the 12 months interim period.