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Solomon Islands Sees Growth in Bank Branches and ATMs

Honiara, Solomon Islands - The number of bank branches and Automated Teller Machines (ATMs) in the Solomon Islands has increased significantly over the past few years, according to a recent report by the Asian Development Bank.

Report Highlights

  • The country now has 10 bank branches, up from 9 in 2018.
  • There are 45 ATMs available across the country, compared to 38 in 2018.
  • According to the International Monetary Fund’s Financial Access Survey, the Solomon Islands had 98,598 depositors with commercial banks in 2019, up from 84,543 in 2018.

Challenges and Opportunities

The report highlighted that the country’s financial system is facing several challenges, including:

  • The need to modernize its payment systems
  • Addressing security risks associated with cash movements between remote agents and commercial bank branches
  • High costs attached to supporting bank agents across a widespread area with small population bases

However, the deployment of branchless banking provides an alternative to delivering formal financial services to remote areas.

Payment System Improvements

The report noted that the country’s payment system is still manual and time-consuming, with interbank transfers taking a significant amount of time. The Central Bank of Solomon Islands has already taken steps to address this issue by establishing a national payments system.

Enhancing Financial Inclusion

Enhancing the country’s payment system and addressing security risks are crucial steps towards promoting financial inclusion in the Solomon Islands.

About the Asian Development Bank

The Asian Development Bank (ADB) is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific. Established in 1966, it is owned by 68 members, with 49 from the region. The ADB’s main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance.

References

  • Asian Development Bank. (2019). Pacific Finance Sector Brief: Solomon Islands. Manila.
  • Central Bank of Solomon Islands. (n.d.). Solomon Islands National Financial Inclusion Strategy 2016-2020. Honiara.
  • International Monetary Fund. (2018). Solomon Islands: 2018 Article IV Consultation. IMF Country Report No. 18/309. Washington, DC.
  • International Monetary Fund. (2019). Financial Access Survey. Online portal: http://data.imf.org/?sk=E5DCAB7E-A5CA-4892-A6EA-598B5463A34C (accessed August 8, 2019). DOI: http://dx.doi.org/10.22617/BRF190375-2