macroeconomic outlook role of financial sectors in … 1 session...securities brokers pension fund...
TRANSCRIPT
![Page 1: Macroeconomic Outlook Role of financial sectors in … 1 Session...Securities Brokers Pension Fund NPPF 2 Macroeconomic Outlook REAL SECTOR • Unfavorable hydrological flows for electricity](https://reader034.vdocuments.site/reader034/viewer/2022050308/5f709abc17a3341ee2643ae4/html5/thumbnails/1.jpg)
Macroeconomic OutlookRole of financial sectors in Bhutan.
TSHERING DHENDUPDMRSROYAL MONATERY AUTHORITY OF BHUTAN11th December, 2018
![Page 2: Macroeconomic Outlook Role of financial sectors in … 1 Session...Securities Brokers Pension Fund NPPF 2 Macroeconomic Outlook REAL SECTOR • Unfavorable hydrological flows for electricity](https://reader034.vdocuments.site/reader034/viewer/2022050308/5f709abc17a3341ee2643ae4/html5/thumbnails/2.jpg)
Financial Sector StructureRoyal Monetary Authority
Banks
BoB
BNB
BDB
Druk PNB
T Bank
Insurance Companies
RICB
BIL
GIC Bhutan Re
Capital Markets
RSEB
Securities Brokers
Pension Fund
NPPF
2
![Page 3: Macroeconomic Outlook Role of financial sectors in … 1 Session...Securities Brokers Pension Fund NPPF 2 Macroeconomic Outlook REAL SECTOR • Unfavorable hydrological flows for electricity](https://reader034.vdocuments.site/reader034/viewer/2022050308/5f709abc17a3341ee2643ae4/html5/thumbnails/3.jpg)
Macroeconomic Outlook
![Page 4: Macroeconomic Outlook Role of financial sectors in … 1 Session...Securities Brokers Pension Fund NPPF 2 Macroeconomic Outlook REAL SECTOR • Unfavorable hydrological flows for electricity](https://reader034.vdocuments.site/reader034/viewer/2022050308/5f709abc17a3341ee2643ae4/html5/thumbnails/4.jpg)
REAL SECTOR
• Unfavorable hydrological flows for electricity generation(3.8%)
• Decrease in hydropower construction activities(13.3% to 6.3%)
![Page 5: Macroeconomic Outlook Role of financial sectors in … 1 Session...Securities Brokers Pension Fund NPPF 2 Macroeconomic Outlook REAL SECTOR • Unfavorable hydrological flows for electricity](https://reader034.vdocuments.site/reader034/viewer/2022050308/5f709abc17a3341ee2643ae4/html5/thumbnails/5.jpg)
INFLATON
![Page 6: Macroeconomic Outlook Role of financial sectors in … 1 Session...Securities Brokers Pension Fund NPPF 2 Macroeconomic Outlook REAL SECTOR • Unfavorable hydrological flows for electricity](https://reader034.vdocuments.site/reader034/viewer/2022050308/5f709abc17a3341ee2643ae4/html5/thumbnails/6.jpg)
BALANCE OF PAYMENT
• In 2017/18, current account deficit 19.02 % of GDP. (Nu.31,306.95 million)
• As compared to 2016/17 24.23 % of GDP (Nu .36,142.83 million)
• Narrowing deficit in trade‐in‐goods• Merchandise exports (5.39%)• merchandise imports(3.24%)
• Gross Intl. Reserve ‐ USD 1,110.91 million as of June 2018, sufficient to finance 13 months of merchandised import
![Page 7: Macroeconomic Outlook Role of financial sectors in … 1 Session...Securities Brokers Pension Fund NPPF 2 Macroeconomic Outlook REAL SECTOR • Unfavorable hydrological flows for electricity](https://reader034.vdocuments.site/reader034/viewer/2022050308/5f709abc17a3341ee2643ae4/html5/thumbnails/7.jpg)
![Page 8: Macroeconomic Outlook Role of financial sectors in … 1 Session...Securities Brokers Pension Fund NPPF 2 Macroeconomic Outlook REAL SECTOR • Unfavorable hydrological flows for electricity](https://reader034.vdocuments.site/reader034/viewer/2022050308/5f709abc17a3341ee2643ae4/html5/thumbnails/8.jpg)
CREDIT MARKET
• Total credit Nu. 107,720.41 million by FIs (June 2018).•13.32%
•The continues reliance on credit from the Fis ---increasing trend.
•Majority of the FI credit was concentrated in Housing (23.58%) followed by Service and Tourism (23.06% ) and Trade in Commerce with (13.96%)
![Page 9: Macroeconomic Outlook Role of financial sectors in … 1 Session...Securities Brokers Pension Fund NPPF 2 Macroeconomic Outlook REAL SECTOR • Unfavorable hydrological flows for electricity](https://reader034.vdocuments.site/reader034/viewer/2022050308/5f709abc17a3341ee2643ae4/html5/thumbnails/9.jpg)
ROLE OF FINANCIAL SECTOR IN BHUTAN
1. Mobilization of savings 2.Link between savings & investment3. Liquidity4.Transfer of risk5. Employment
![Page 10: Macroeconomic Outlook Role of financial sectors in … 1 Session...Securities Brokers Pension Fund NPPF 2 Macroeconomic Outlook REAL SECTOR • Unfavorable hydrological flows for electricity](https://reader034.vdocuments.site/reader034/viewer/2022050308/5f709abc17a3341ee2643ae4/html5/thumbnails/10.jpg)
ROLE OF FINANCIAL SECTOR IN BHUTAN
6. Financing the key sectors in the economy.
![Page 11: Macroeconomic Outlook Role of financial sectors in … 1 Session...Securities Brokers Pension Fund NPPF 2 Macroeconomic Outlook REAL SECTOR • Unfavorable hydrological flows for electricity](https://reader034.vdocuments.site/reader034/viewer/2022050308/5f709abc17a3341ee2643ae4/html5/thumbnails/11.jpg)
Points for consideration?
![Page 12: Macroeconomic Outlook Role of financial sectors in … 1 Session...Securities Brokers Pension Fund NPPF 2 Macroeconomic Outlook REAL SECTOR • Unfavorable hydrological flows for electricity](https://reader034.vdocuments.site/reader034/viewer/2022050308/5f709abc17a3341ee2643ae4/html5/thumbnails/12.jpg)
Points ‐ Development of the Capital Market
‐ Maintaining External Stability(credit concentration)
‐ Priority Sector Lending (PSL) – CSI sector • Five economic Jewels
• Boost domestic production/reduce dependency on imports• Coordination of several Government agencies• Role of FS‐ collective commitment for better financing• Catalyze the CSI sector into growth driver.
‐ Alternate source of financing (CF,AI)
‐ Interbank borrowing
‐ Financial Literacy (NFLS 2018‐2023)
‐ Compliance to regulatory requirement
![Page 13: Macroeconomic Outlook Role of financial sectors in … 1 Session...Securities Brokers Pension Fund NPPF 2 Macroeconomic Outlook REAL SECTOR • Unfavorable hydrological flows for electricity](https://reader034.vdocuments.site/reader034/viewer/2022050308/5f709abc17a3341ee2643ae4/html5/thumbnails/13.jpg)
Thank you!