Bank of Bhutan (BoB) is the largest and oldest

commercial bank A commercial bank is a financial institution which accepts deposits from the public and gives loans for the purposes of consumption and investment to make profit. It can also refer to a bank, or a division of a large bank, which deals with cor ...

Bhutan Bhutan (; dz, འབྲུག་ཡུལ་, Druk Yul ), officially the Kingdom of Bhutan,), is a landlocked country in South Asia. It is situated in the Eastern Himalayas, between China in the north and India in the south. A mountainous ...

. It was established under the provision of the

royal charter A royal charter is a formal grant issued by a monarch under royal prerogative as letters patent. Historically, they have been used to promulgate public laws, the most famous example being the English Magna Carta (great charter) of 1215, bu ...

of May 1968. It was also the only central bank before the

Royal Monetary Authority of Bhutan The Royal Monetary Authority of Bhutan ( dz, བྲུག་རྒྱལ་གཞུང་དངུལ་ལས་དབང་འཛིན་) is the central bank of Bhutan and is a member of the Asian Clearing Union. It is also the minting aut ...

in 1982. It is registered under the Companies Act of Bhutan, 2000 as a

public sector The public sector, also called the state sector, is the part of the economy composed of both public services and public enterprises. Public sectors include the public goods and governmental services such as the military, law enforcement, infra ...

Developments and Presence

Being the largest

, it has its presence in every Dzongkhang or districts with over 47 branches all over

. Bank of Bhutan also introduced ATMs,

Point of Sales The point of sale (POS) or point of purchase (POP) is the time and place at which a retail transaction is completed. At the point of sale, the merchant calculates the amount owed by the customer, indicates that amount, may prepare an invoice ...

and

Internet Banking Online banking, also known as internet banking, web banking or home banking, is an electronic payment system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial inst ...

services in the country. As of July 1, 2017, the bank's assets reached 47.7 million

Ngultrum The ngultrum (; dz, དངུལ་ཀྲམ , symbol: Nu., code: BTN) is the currency of the Kingdom of Bhutan. It can be literally translated as 'silver' for ''ngul'' and 'coin' for ''trum''. It is subdivided into 100 chhertum ( dz, ཕྱེ ...

(about US$750 thousand). 55% of them consist of loans, primarily consumer loans to the population and mortgages. The bank remains the largest bank in the kingdom. It accounts for 41% of deposits and 32% of loans to the economy.

Investments

The owners of Bank of Bhutan are Druk Holding & Investments Ltd. , which owns 80% of the authorized capital, and the

State Bank of India State Bank of India (SBI) is an Indian multinational public sector bank and financial services statutory body headquartered in Mumbai, Maharashtra. SBI is the 49th largest bank in the world by total assets and ranked 221st in the ''Fortune ...

, which accounts for 20% of the capital. Until 2007, the Bank was operated by the Ministry of Finance of Bhutan. It is managed by Druk Holding & Investments, which also manages other public sector companies. Druk Holding & Investments is a holding company owned by the

Government of Bhutan The Government of Bhutan has been a constitutional monarchy since 18 July 2008. The King of Bhutan is the head of state. The executive power is exercised by the Lhengye Zhungtshog, or council of ministers, headed by the Prime Minister. Legislat ...

, whose task is to manage state property. The Ministry of Finance of Bhutan is the sole shareholder of the holding company. Druk Holding & Investments owns 10 state-owned companies in Bhutan, it owns at least 51% of the capital in 4 more subsidiaries, including the Bank, and minority stakes in 5 other companies.

Foreign Exchange

Bank of Bhutan is an authorized dealer of

foreign exchange The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency. It includes all as ...

. It is authorized to trade the following currencies-{{Cite web, last=eSolutions, first=Green, title=Foreign Exchange Services, url=https://www.bob.bt/international-banking/foreign-exchange-services/, access-date=2021-11-09, website=Bank of Bhutan, language=en *

U.S. Dollar The United States dollar ( symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the officia ...

Pound Sterling Sterling (abbreviation: stg; Other spelling styles, such as STG and Stg, are also seen. ISO code: GBP) is the currency of the United Kingdom and nine of its associated territories. The pound ( sign: £) is the main unit of sterling, and t ...

Euro The euro ( symbol: €; code: EUR) is the official currency of 19 out of the member states of the European Union (EU). This group of states is known as the eurozone or, officially, the euro area, and includes about 340 million citizens . ...

Japanese Yen The is the official currency of Japan. It is the third-most traded currency in the foreign exchange market, after the United States dollar (US$) and the euro. It is also widely used as a third reserve currency after the US dollar and the ...

Swiss Franc The Swiss franc is the currency and legal tender of Switzerland and Liechtenstein. It is also legal tender in the Italian exclave of Campione d'Italia which is surrounded by Swiss territory. The Swiss National Bank (SNB) issues banknotes and the f ...

Hong Kong Dollar The Hong Kong dollar (, currency symbol, sign: HK$; ISO 4217, code: HKD) is the official currency of the Hong Kong, Hong Kong Special Administrative Region. It is subdivided into 100 cent (currency), cents or 1000 Mill (currency), mils. The H ...

Canadian Dollar The Canadian dollar ( symbol: $; code: CAD; french: dollar canadien) is the currency of Canada. It is abbreviated with the dollar sign $, there is no standard disambiguating form, but the abbreviation Can$ is often suggested by notable style ...

Australian Dollar The Australian dollar (sign: $; code: AUD) is the currency of Australia, including its external territories: Christmas Island, Cocos (Keeling) Islands, and Norfolk Island. It is officially used as currency by three independent Pacific Island s ...

* Danish Kroner *

Singapore Dollar The Singapore dollar (sign: S$; code: SGD) is the official currency of the Republic of Singapore. It is divided into 100 cents. It is normally abbreviated with the dollar sign $, or S$ to distinguish it from other dollar-denominated currenci ...

References

Banks of Bhutan Economy of Bhutan 1968 establishments in Bhutan Organisations based in Bhutan with royal patronage Companies based in Thimphu

Developments and Presence

Investments

Foreign Exchange

See also

References