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Treasury and Investment Management Unit and Payment & Settlement System​​​​

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Last modified: 06/12/2016 10:24 AM |

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by: i:0#.w|bnmof\mohayazeed_jasni

Overview

Treasury and Investment Management Unit

This division monitors and maintains external reserves in order to safeguard the international value of the Brunei currency with sufficient backup of the currency in circulation. The external assets of the Currency Fund must not be less than 100 per cent of the face value of the currency notes and coins in circulation as per required under Section 24 of the Currency and Monetary (Principal) Order, 2004 as amended in Section 16 of the Currency and Monetary (Amendment) Order, 2010.

 

Payment & Settlement

One of the roles of AMBD under the Autoriti Monetari Brunei Darussalam Order, 2010 is to develop and manage an inter-bank funds system (Section 36 (1) g). Furthermore, the AMBD (Amendment) Order, 2015 explicitly empowers AMBD to establish Real-Time Gross Settlement systems (Section 43A). AMBD completed implementation of the Brunei Real-Time Gross Settlement system (RTGS) in November 2014, with the co-operation of the Brunei Association of Banks (BAB).  RTGS handles mainly high-value inter-bank payments for the banks and their customers. The Brunei RTGS is the first such system in ASEAN to be implemented using SWIFT's new message standards ISO20022 MX.  The system is running smoothly with 2-300 transactions a day being processed and settled.  In parallel with the RTGS implementation, AMBD took over the running of the manual Cheque Clearing House from BAB on 1 December 2014.  We are now working with the BAB to implement a new Automated Clearing House (ACH) which will enable truncation of cheques at branches, so that the electronic data will be processed instead of the paper cheques.  The ACH will also process new inter-bank electronic instruments in bulk - direct credits (such as payrolls) and direct debits (such as bill payments).  The initial implementation is planned for Q4 2015.  It is the policy of AMBD, as in our neighbouring ASEAN countries, to discourage the use of cheques and to promote electronic payments over the next few years.​​