With a mandate extending to 2027, Marcelo da Cruz Carvalho assumed leadership of Banco Nacional de Comércio de Timor-Leste (BNCTL) in March 2025 amid a pivotal national transition. The bank, as the only fully state-owned commercial institution in the country, plays a commanding role in the local financial ecosystem, responsible for approximately 75% of total lending and over 30% of deposits across Timor-Leste’s banking sector. Reasserting leadership in the domestic market “We have a five-year strategy to strengthen our position in the market, support national development and maintain our financial institution role,” said Carvalho. “Our lending already covers a dominant share of the market.” BNCTL's contribution to national development is anchored in its status as the principal financier of both government-aligned projects and local enterprise, serving as a key enabler of access to capital in rural and underserved areas. Balancing digital transformation with inclusive banking While reaffirming its branch network’s relevance—especially in remote areas—BNCTL is aggressively pursuing digital transformation. “Digitalisation is a key focus, but we must combine it with physical outreach through our branches and ATMs,” explained Carvalho. The bank is leveraging agent banking in rural communities while integrating new digital payment capabilities. A major step forward is BNCTL’s partnership with TELEMOR, the country’s largest telecom provider, to co-develop and test an e-wallet payment system, a move expected to expand financial access to a broader swathe of Timor-Leste’s 1.3 million people. “This integration will improve accessibility to digital payments nationwide,” Carvalho noted, referencing TELEMOR’s extensive footprint of over 2,000 retail and service touchpoints—far exceeding BNCTL’s 63 ATMs and 29 branches. Investing in core systems, people and platforms BNCTL is also undertaking critical internal upgrades. “We are upgrading our core banking system from R14 to R23,” Carvalho revealed, referring to the Temenos banking platform in use. “We have started this process already in April and are still in the installation phase.” With a workforce of nearly 500 staff, BNCTL sees human capital as central to its success. Staff receive regular training, and the bank has created a new cybersecurity division, reporting independently to senior leadership, to ensure client data protection and readiness for digital risks. “We now have a dedicated cybersecurity unit, and we are training staff while investing in the right equipment,” said Carvalho. The establishment of this unit reflects the increasing importance of cyber resilience as BNCTL rolls out more digital services. Supporting financial inclusion and community engagement Financial inclusion remains a core national responsibility for BNCTL. Beyond its own infrastructure, the bank operates a network of agent bankers—larger agents who not only help open accounts but also issue loans and receive payments for taxes, passports and student fees. “So far we’ve activated six agents and expanded our coverage to over 464 villages,” he added. BNCTL also facilitates government-to-person (G2P) transfers, such as pension and social welfare payments. “We distribute payments to elderly citizens up to four times a year, reaching remote districts,” Carvalho said, noting that these exercises often take up to a month to complete due to geographical challenges. On the education front, BNCTL has launched financial literacy programmes in schools and communities. These include workshops on budgeting, classroom-based learning for students, and the creation of accessible financial education materials. “We are educating youth on financial matters and promoting savings habits,” he said. Collaborating with government and international partners In alignment with national development goals, BNCTL partners with ministries and development institutions. For example, it will soon formalise a memorandum of understanding with the Ministry of Industry to co-finance industrial sector loans with government guarantees. “We provide the loans, and the government offers guarantees in strategic sectors like energy and transport,” said Carvalho. Internationally, BNCTL is engaged with organisations like the International Finance Corporation (IFC) and MoneyGram, and uses platforms such as SWIFT, UnionPay and corresponding banking partners such as Bank Mandiri to facilitate cross-border remittances and financial flows. “We are also adopting MasterCard, and working with banks from Indonesia, China and the United States (US),” he added. Readying for ASEAN: regulation, standards and cross-border banking As Timor-Leste finalises its ASEAN accession, BNCTL is aligning with regional financial standards and platforms. The central bank has launched a nationwide cashless campaign and will implement an instant payments system (IPS) by end-2026. “BNCTL is ready to support this shift,” Carvalho said. However, challenges remain. With capital constraints limiting single-borrower exposure (e.g., a $37 million cap due to capital adequacy limits), the bank must carefully manage loan growth. “We must also navigate legal infrastructure gaps, such as the lack of a formal property title registry,” he noted. BNCTL is engaging regional peers, particularly in Indonesia and Singapore, and sees further potential in small and medium-sized enterprise (SME) finance, trade settlement and cross-border payments. “We already have some working relationships with ASEAN players and are exploring ways to deepen these ties,” he said. Building institutional capacity for a regional role Recognising that capacity is critical to its evolution, BNCTL is expanding its training efforts and participating in global leadership programmes. “Our staff undergo regular training, and we are sending a team to China for the upcoming innovation study tour,” said Carvalho. He also expressed strong interest in joining international bank leadership programmes, such as those offered by TAB Global in London, which combine traditional banking knowledge with emerging technology insights. Bridging local responsibility with regional ambition BNCTL stands at the intersection of national duty and regional opportunity. Under Carvalho’s stewardship, the bank is not only expanding digital and financial access across Timor-Leste, but also laying the groundwork for broader ASEAN integration. “We are committed to both our local development mandate and preparing to compete and collaborate in a regional environment,” said Carvalho. As Timor-Leste’s financial sector enters its next chapter, BNCTL’s strategic transformation offers a blueprint for inclusive, secure and regionally connected banking.
