Pacific Finance Sector Brief: Solomon Islands
Abstract
Description
This brief provides an overview of Solomon Islands’ finance sector, and discusses the key challenges and how they can be addressed.
Solomon Islands has a relatively well-developed financial system that is dominated by four commercial banks. Together they account for 62% of the country’s finance sector assets, while the Solomon Islands National Provident Fund accounts for 34%. Other major actors in the finance sector include four licensed insurance companies, four insurance brokers, and two insurance agents. Private sector credit is steadily increasing in Solomon Islands on the back of steady economic growth, but remains low. Improvements in the collateral framework and risks assessment practices would help boost private sector lending.