Feasibility Study and Business Plan for an Islamic Greenfield SME Bank in Brunei Darussalam

2016-01-31 - 2016-04-30

LFS conducted a study to assess the feasibility for setting up a Greenfield SME bank in Brunei Darussalam. Based on the results of the study, a comprehensive business plan for a tailor-made intervention (the establishment of a cash-less greenfield bank) was drafted and presented to the Government of Brunei. This business plan includes all aspects of setting up head office structures and operational functions as well preparation of the financial projections for the first five years of operations.
Analysis of the country’s macroeconomic and political situation, and conclusions regarding possible implications for a SME Bank; Assessment of the legal and regulatory framework for a microfinance institution or an SME Bank, including a recommendation for the type of institution to be created under such conditions; Initial discussions with regulators and other relevant Bruneian industry stakeholders on the creation of a specialized microfinance institution or SME Bank; Assessment of the size and structure of competition, description of main players and competitors in the Bruneian SME finance industry; Market study of the SME sector and its demand for and supply of financial services, including a survey Identification of potential investment partners for a specialized SME Bank; Establishment of a five-year business plan for a specialized SME Bank, with emphasis on the following points: Outline of the proposed ownership, governance and management structure; Design of the organisational and institutional structure, with full details of the applicable legal and regulatory framework; Development of a range of asset and liability-side products to meet the needs of SMEs, with a clear focus on the description of the loan products and the lending technology (including analysis of loan applications, payment motivation, loan monitoring, marketing strategies); Development of a regional expansion strategy and plan; Elaboration of detailed financial projections over a five-year period; Development of a work plan for the establishment of a specialised SME Bank; Identification of staffing and equipment requirements for the establishment of the SME Bank. Presentation of findings and recommendations to the Deputy Finance Minister of Brunei.