Bank of Bhutan


Bank of Bhutan


Bank of Bhutan (BoB) is the largest and oldest commercial bank in Bhutan. It was established under the provision of the royal charter of May 1968. It was also the only central bank before the Royal Monetary Authority of Bhutan in 1982. It is registered under the Companies Act of Bhutan, 2000 as a public sector commercial bank.

History

Founded in 1968, the bank has presence in every Dzongkhang or districts with over 47 branches all over Bhutan. It also introduced ATMs, Point of Sales and Internet Banking services in the country.

As of July 1, 2017, the bank's assets reached 47.7 million Ngultrum (about US$750 thousand). 55% of them consist of loans, primarily consumer loans to the population and mortgages. The bank remains the largest bank in the kingdom. It accounts for 41% of deposits and 32% of loans to the economy.

Investments

The owners of Bank of Bhutan are Druk Holding & Investments Ltd. , which owns 80% of the authorized capital, and the State Bank of India, which accounts for 20% of the capital. Until 2007, the Bank was operated by the Ministry of Finance of Bhutan. It is managed by Druk Holding & Investments, which also manages other public sector companies. Druk Holding & Investments is a holding company owned by the Government of Bhutan, whose task is to manage state property. The Ministry of Finance of Bhutan is the sole shareholder of the holding company. Druk Holding & Investments owns 10 state-owned companies in Bhutan, it owns at least 51% of the capital in 4 more subsidiaries, including the Bank, and minority stakes in 5 other companies.

Foreign Exchange

Bank of Bhutan is an authorized dealer of foreign exchange in Bhutan. It is authorized to trade the following currencies-

  • U.S. Dollar
  • Pound Sterling
  • Euro
  • Japanese Yen
  • Swiss Franc
  • Hong Kong Dollar
  • Canadian Dollar
  • Australian Dollar
  • Danish Kroner
  • Singapore Dollar

See also

  • Banking in Bhutan


References


Text submitted to CC-BY-SA license. Source: Bank of Bhutan by Wikipedia (Historical)



 

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