Pacific Finance Sector Brief: Marshall Islands
This brief provides an overview of the Marshall Islands’ finance sector, and discusses the key challenges and how they can be addressed.
The Marshall Islands’ financial system is comprised of three main banks, two large money transfer operators, two insurance companies, and a pension fund. The stability of the country’s banking system faces risks on two fronts. One is the high level of household debt, which reached 60% of total employee’s compensation in 2018. The other is the possibility of the Marshall Islands losing its connections with US banks due to rising costs associated with complying to US anti-terrorism financial rules. In response to these risks, the government is undertaking measures to strengthen financial regulations and prudential guidelines and is drafting new anti-money laundering legislation.