Banking in Bhutan
Banking in
Since its establishment in 1982, the
Overview
There is no formal system of
As of 2014, Bhutan's financial sector consists of five banks (Bank of Bhutan, Bhutan National Bank, Druk PNB Bank, T-Bank, Bhutan Development Bank) and three other organizations (Royal Insurance Corporation of Bhutan, Bhutan Insurance, National Pension and Provident Fund).[2][4]
The Royal Monetary Authority is one of the primary regulators of financial institutions and is also responsible for Bhutan's monetary policy.[2]
Bhutan's currency, the
History
1960s-1980s: Bhutan's Central Bank
Bhutan remained isolated from the world until it had trouble controlling its monetary system, so the Central Bank of Bhutan was established. Bhutan's commercial bank, Bank of Bhutan, was established on 28 May 1968[4] as a joint venture with the Chartered Bank of India, Australia and China, which owned 25% of the bank.[2][5] In 1970, this share was transferred to the State Bank of India.[5] The bank was restructured in the year 1971.[5] Government departments were required to deposit all of their accounts with this bank to ensure that it had sufficient funds until 1982, when the Royal Monetary Authority was established.[5] Since then, the Bank of Bhutan has been the retail banking agent for the Royal Monetary Authority.[5]
The Royal Monetary Authority was established in 1983; before then, Bank of Bhutan was the country's central bank.[2]
The Bhutan Development Finance Corporation/Bhutan Development Bank
The government of Bhutan established the Bhutan Development Finance Corporation (BDFCL) on 31 January 1988
Non-Bank Financial Institutions
As part of economic modernization,
From 1980, individuals could also invest their savings in the newly-established Unit Trust of Bhutan, with its main office in Phuntsholing.[5] This trust channels invested funds, for which it issues shares called units, into industrial and commercial development projects[clarification needed].[5] As of 1991, the Government Employees' Provident Fund (established in 1986), the Bhutan Development Finance Corporation, and other non-bank institutions were of low influence, and were constrained by the rudimentary use of money in the economy.[clarification needed][1][5]
Post-2000
In 2002, the Bank of Bhutan's management was returned to the Government of Bhutan, which owns 80% of the bank through Druk Holdings and Investments, a state-owned enterprise; the State Bank of India holds the other 20%.[2]
The Bank of Bhutan's principal office is in
In 2010, BDFCL became the Bhutan Development Bank Ltd. (BDB), an ordinary commercial bank.[2][4] As of 2014, BDB has more than 30 branches, 5 field offices, and 5 ATMs.[2]
Bhutan National Bank upgraded[
Board members
As of 2021 the bank has six board members, including personnel from the Department of Finance and from the Ministry of Information and Communications.[7]
Board Member | Position | Current Address |
---|---|---|
Mr. Karma Yonten | Chairperson | Office of Performance Management, His Majesty's Secretariat |
Ms. Tashi Lhamo | Director | Director, Department of Finance, DHI |
Mr. Pemba Wangchuk | Director | Director General, RSTA, MoIC |
Dr. Phuntsho Choden | Independent Director | Consultant & Researcher, Changtagang, Below Begana Road, Thimphu |
Mr. Kezang | Independent Director | CEO, Institute for Management Studies, Thimphu |
Mr. Dorji Kadin | Execuative Director | CEO, Bank of Bhutan Ltd., Thimphu |
References
- ^ a b c d Worden, Robert L. "Banking and Credit". A Country Study: Bhutan (Andrea Matles Savada, editor). Library of Congress Federal Research Division (September 1991). This article incorporates text from this source, which is in the public domain.
- ^ a b c d e f g h i j k l m n o p q r s Cole, Rebel A.; Carrington, Sarah (22 August 2016). "An Assessment of Financial Sector Development in Bhutan" (PDF). ADB South Asia Working Paper Series No. 44, August 2016. Retrieved 20 April 2021.
- ^ ISBN 978-0-8213-9834-0. Archived (PDF) from the original on 2021-12-02.)
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ignored (help - ^ a b c d e f g h Bahadur Rahut, Dil; Velásquez Castellanos, Iván; Sahoo, Pravakar (June 2012). "PERFORMANCE OF FINANCIAL INSTITUTIONS IN BHUTAN" (PDF). Asia-Pacific Development Journal. 19.
- ^ a b c d e f g h i j k l m n o Coutsoukis, Photius (10 November 2004). "Bhutan Banking and Credit". photius.com. Archived from the original on 2004-12-30. Retrieved 2021-04-25.
- ^ "about – Bank of Bhutan". www.bob.bt. Retrieved 2017-08-09.
- ^ "Board of Director". www.rma.org.bt. Retrieved 2021-06-04.