Overview of the FSM Banking System
The Financial System of the FSM comprises of Regulated and Non-regulated
Financial Institutions.
Overview of the Regulated Financial Institutions:
Currently, there are two regulated commercial banks in the country.
These banks are licensed by the Board, the
Bank of Guam (BOG) and the
Bank of the Federated States of Micronesia
(BFSM). BOG is a foreign bank domiciled or incorporated in Guam, while
the BFSM is a domestic bank. Both banks are US FDIC insured, and have
established branches in all four States in the FSM: Yap, Chuuk, Pohnpei and
Kosrae. The currency in use in the FSM is the US dollar.
The
financial institutions that are under the regulatory and supervisory
umbrella of the Board are those that accept deposits from the public. In fact,
"banking business" is defined under 29FSMC to mean the business of accepting
deposits of money from the public, withdrawable or payable on demand
or after a fixed period or after notice, or any similar operation through
the frequent sale or placement of notes or other securities, and the use of
such funds either in whole or part for loans, investment or any
other operation either authorized by law or considered a generally accepted
banking practice, for the account and at the risk of the person doing such
business. The general public is encouraged to contact these banks should
there be any questions or further information needed:
Bank of Guam (Corporate Office) and
Bank of the FSM (Corporate Office).
Overview of the Non-regulated Financial System:
The non-regulated financial institutions are financial entities not
under the regulatory and supervisory umbrella of the FSM Banking Board/Commission. In
other words, these entities do not meet the definition of "banking business"
under
Title 29 of the FSMC.
These Institutions are:
(1)
FSM Development Bank ("FSMDB"). FSMDB was established by Title 30 of the FSMC, as
amended. The primary purpose of the FSMDB is to advance the economic
development of the FSM through the provisions of economic development loans.
FSMDB has its headquarter in the State of Pohnpei and branches throughout
the four States in the FSM: Yap, Chuuk, Pohnpei and Kosrae. FSMDB primarily
offers loans to commercially viable projects and is authorized to provide
loan guarantees to other financial institutions in the country. FSMDB can
provide loans to commercially viable projects that are owned by FSM citizens
of at least 25%. Shareholders of the FSMDB comprise of the FSM National
Government (98.7%), Chuuk State Government (1%) and Kosrae State Government
of (0.03%).
Currently, FSMDB offers: a) Business Commercial Loans;
b)
Home or Housing Loans;
c) Personal Consumer Loans
Feel free to
contact FSMDB at: P.O. Box M. Kolonia Pohnpei, FM 96941
Phone: (691) 320-2840
or visit its website at
www.fsmdb.fm or Email to:
info@fsmdb.fm(2)
FSM Health Insurance Plan ("MiCare");
(3) Insurance Companies;
(4) Credit Unions - There are several of these
entities in the FSM;
(5) Money Transfers - There are several of these
entities in the FSM;
(6) Housing Authorities
Banking and Banking Related Legislations:
FSM Title 29
FSM Title 36
FSM Title 11
Banking Regulations:
Dormant Accounts