How banks work | Central Bank Solomon Islands

What is a bank?

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Banks are commercial financial institutions working under the supervision of the Central Bank and following rules, regulations and procedures laid down by the relevant laws. Banks offer products and services that encourage people to save money and keep their savings secure for a future use.

The Solomon Islands regulated financial system consists of commercial banks, credit institutions, a superannuation fund, the Development Bank of Solomon Islands, general insurers, a life insurer, insurance brokers, insurance corporate agents, credit unions, restricted foreign exchange dealers, money changers, and a credit reporting agency

Commercial banks in Solomon Islands

The following institutions are licensed and supervised by the Central Bank of Solomon Islands to do business in Solomon Islands under the Financial Institutions Act 1998 (as amended).

ANZ Bank

Australia and New Zealand Banking Group Limited, Solomon Islands Branch. SWIFT: ANZBSBSB. Phone: +677 21111

BRED Bank Solomon

SWIFT: BREDSBSB. Phone: +677 27777. Website: www.bred.sb

BSP Financial Group

Bank South Pacific Financial Group Limited. SWIFT: BOSPSBSB. Phone: +677 23022. Website: www.bsp.com.sb

Pan Oceanic Bank

Pan Oceanic Bank Limited. SWIFT: POBBSBSB. Phone: +677 27762. Website: www.pob.com.sb

Banking products and services

Savings Account

All banks now offer simple savings accounts that allow individuals to put away small sums of money at regular intervals and draw the money when they need it. Savings accounts can be opened through any bank branch or agency, and with the introduction of mobile and branchless banking in Solomon Islands, accounts can also be opened through bank agents.

Term Deposits

Term deposits are usually for a fixed term and carry a small interest. Usually banks accept term deposits for lump sum amounts. For people with large amounts of cash, term deposits are a good way of saving for a medium term and also earning an interest on their savings.

Loans and Borrowings

If individuals have loans with commercial banks or other lending institutions, it is important that they have debt reduction plans to ensure debt repayments are up to date. Individuals who have difficulties with repayments can talk to their bank or lending institution to work out a repayment plan or options that may work for them.

Other licensed financial institutions

Development Bank

The Development Bank of Solomon Islands is the country's dedicated development bank, incorporated and owned in Solomon Islands. Contact: +677 21595. Website: www.dbsi.sb

Credit Institutions

Licensed credit institutions in Solomon Islands include BSP Finance Solomon Islands Limited, Credit Corporation Solomon Islands Limited, and Solomon Finance Limited — providing lending and finance services to individuals and businesses.

Credit Unions

Credit unions are cooperative institutions with voluntary membership and are democratically managed by members through their elected representatives. They provide services such as savings and loans. In Solomon Islands there are currently around 17 functioning credit unions, most of them employee-based and located in Honiara.

Superannuation — SINPF

The Solomon Islands National Provident Fund (SINPF) is the only provider of superannuation benefits in the country. For those employed, NPF membership is mandatory. Member contribution is 7.5% of gross wages and employer contribution is 5%, totalling 12.5%.

Your rights as a bank customer

CBSI issued Prudential Guidelines including Prudential Guidelines 8 and 9 (PG8 and PG9) to financial institutions. Under PG8, financial institutions are required to disclose their interest rates, fees and other charges on all loan and deposit products before entering into any contract. Under PG9, financial institutions must resolve complaints and convey the decision to a customer no later than 30 calendar days from the date the complaint or concern is raised.

How CBSI protects you

CBSI through the National Financial Inclusion Unit delivers financial literacy and competency programs to empower consumers, helping individuals make informed decisions on their personal finances and resources. Financial service providers are also required to establish consumer complaints units within their organisations.