Question 1

What is the Development Bank of Kiribati?

Accepted Answer

The Development Bank of Kiribati (DBK) is a state-owned financial institution established by the Development Bank of Kiribati Act of 1986. As a wholly government-owned bank, it operates autonomously under the direction of a Board of Directors appointed by the Minister of Finance and Economic Development. The bank plays a crucial role in supporting economic development in Kiribati by providing targeted financial services and support to local businesses and individuals.

Question 2

When was the Development Bank of Kiribati founded?

Accepted Answer

The Development Bank of Kiribati was officially established through the Development Bank of Kiribati Act in 1986 and began its operations on 01 August 1987. The bank was created to support the economic growth and development of Kiribati, with a specific focus on supporting local businesses, primary production, and economic initiatives.

Question 3

Where is the Development Bank of Kiribati headquartered?

Accepted Answer

The bank is headquartered in Tarawa, the capital of Kiribati. Its main office is located in Tarawa, with additional presence including a branch on Kiritimati and a resident agent on 15 outer islands. The bank currently employs 37 staff at its main office and maintains a strategic presence across multiple islands.

Question 4

Where does the Development Bank of Kiribati operate?

Accepted Answer

The Development Bank of Kiribati operates primarily within the Republic of Kiribati. Its operations span the main island of Tarawa, Kiritimati (Christmas Island), and extend to 15 outer islands through a resident agent network. This widespread presence allows the bank to serve communities across the island nation.

Question 5

What services does the Development Bank of Kiribati offer?

Accepted Answer

DBK provides a range of financial services, including:
• Loans for primary production
• Financing for industrial and commercial undertakings
• Business development loans
• Technical assistance and advisory services
• Deposit services
• Loan guarantees
• Investment support for local enterprises

The bank uses an innovative online system called Loan Plus 1 to manage its lending services, which was launched in August 2017 and supports various loan types with different interest rate structures.

Question 6

What type of financial institution is the Development Bank of Kiribati?

Accepted Answer

The Development Bank of Kiribati is a state-owned development bank. Its primary mandate is to support economic growth, raise living standards, and create employment opportunities for I-Kiribati people. Unlike commercial banks, DBK focuses on developmental objectives, providing financial services that might not be commercially viable but are crucial for the nation's economic progress.

Question 7

What makes the Development Bank of Kiribati unique?

Accepted Answer

The bank stands out for its commitment to supporting Kiribati's economic development, particularly in areas that might be overlooked by commercial banking institutions. Its unique characteristics include:
• Full government ownership
• A mixed board comprising public and private sector representatives
• Focus on supporting local economic development
• Ability to provide loans with or without traditional security
• Mandate to prioritize the economic advancement of the indigenous population

Question 8

Additional Challenges and Considerations

Accepted Answer

The bank faces several operational challenges, including:
• Competition in social development and personal lending
• Limited banking alternatives in the market
• Undercapitalization
• Need for robust risk assessment and management systems

The Development Bank of Kiribati continues to play a critical role in supporting the economic aspirations of Kiribati, adapting to changing market conditions and socio-economic environments.

Development Bank of Kiribati

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About Development Bank of Kiribati in Kiribati