Kiribati’s Financial Services Regulation: A Work in Progress?

In the Pacific island nation of Kiribati, financial services regulation is a complex process handled by various government agencies rather than a single standards organization. This fragmentation may hinder the country’s ability to standardize regulatory practices.

Regulatory Agencies

• Ministry of Finance and Economic Planning: Oversees the financial sector in Kiribati.
• Telecommunications Authority of Kiribati: Regulates the telecoms industry.
• Public Utilities Board: Responsible for infrastructure management.
• Foreign Investment Commission: Reviews proposals for foreign direct investment (FDI).
• Lands Management Division of the Ministry of Home Affairs and Rural Development: Handles land transactions.

Challenges and Opportunities

Kiribati ranks a modest 115 out of 183 countries in the World Bank’s Ease of Doing Business report 2011. While it fares well in terms of tax regime and investor protection, there is still room for improvement in creating an environment conducive to business growth.

This article highlights the challenges faced by Kiribati in standardizing its financial services regulation. With a lack of a single standards organization, regulatory practices may be fragmented and inconsistent. However, with efforts from various government agencies, there are opportunities to improve the country’s business environment and attract foreign investment.