The Central Bank of Bahrain supports University of Bahrain Master in Financial Technology student projects

 

Manama, Kingdom of Bahrain – 13 April 2022 – As part of the Central Bank of Bahrain’s (“CBB”) commitment to enhance the competitiveness of the financial services sector and in accelerating the development of the local talent pool to meet the needs of the fast-evolving digital economy, the CBB is cooperating  with the University of Bahrain to offer its support for the capstone consultancy projects of the Master in Financial Technology  at the University.  The program will involve   providing research topics for the students’ graduation projects.  The training program will be offered via the CBB’s digital lab, FinHub973, which is powered by Fintech Galaxy’s FinX22 Open API platform.

The graduation project for the Master in Financial Technology consists of a consulting experience through which students apply the knowledge and skills they have learned in the program. The program aims to develop new insights for its candidates towards new financial technologies and financial analytics.

Ms. Yasmeen Al-Sharaf, Director of FinTech & Innovation Unit at the Central Bank of Bahrain commented: “We are pleased to announce our collaboration with the University of Bahrain to empower Bahraini students, by equipping them with the skillsets required for today’s business environment which is dominated by evolving FinTech applications and innovations.  Investing in the upskilling of Bahraini youth to meet the changing dynamics of the financial world and offering them with all means of support is a key priority for us at the Central Bank of Bahrain and is an integral part of an effective financial ecosystem”.

Ms. Yasmeen Al-Sharaf also commended the role of each of the Bank of Bahrain & Kuwait, Bahrain Islamic Bank (BisB) and Arab Banking Group (Bank ABC) in supporting this initiative and their commitment to supporting the local workforce, emphasizing on their pioneering and constructive efforts in the development of the FinTech ecosystem and financial services sector at large.

The Dean of the College of Business Administration, Prof. Dr. Hatem Masri, praised the support that the College enjoys from major companies and institutions of the public and private sectors, particularly the Central Bank of Bahrain , stressing that this support would help improve the outputs of scientific research in the College on the one hand, and create solutions to the challenges facing the banking sector in the Kingdom of Bahrain on the other hand.

Dr. Hana Bawazir, Head of the Department of Economics and Finance at the College of Business Administration at the University of Bahrain, expressed the department’s endeavor to cooperate with specialized experts, with the aim of enriching the program’s participants with innovation and creativity skills in this field, training them practically and theoretically, and preparing them to meet the challenges of the current data-based economy.

The supervisor of the graduation projects in the Master in Financial Technology, Dr. Yomna Abdulla, stressed on the importance of student projects to have an impact on society and help in development of the economy in the Kingdom of Bahrain.

Central Bank of Bahrain issues new amendments to the directives on Financing Companies under CBB Rulebook Volume 5

Manama, Bahrain – 8th February 2022- The Central Bank of Bahrain (“the CBB”) issued today amendments to the CBB Rulebook Volume 5 (Type 3: Financing Companies), to primarily add within its scope new and innovative business models for financing of consumer products, as part of short-term financing activities to keep pace with developments in the business environment and consumer needs for financial services.

These amendments will facilitate the entry of new companies into the market in this field such as online platforms that provide short-term financing “Buy Now, Pay Later” (BNPL).

The changes made to the CBB Rulebook provide the following key amendments for this category of financing companies:

  • Reducing the restrictions on the ownership percentage of Controllers;
  • Suitable management structure to meet technology-based business models;
  • A capital based on the nature, scale and size of operations. Minimum capital of BD5 million is not applicable to them as is the case for the current financing companies.

Mrs. Shireen A.Karim Al Sayed, Director – Regulatory Policy Unit, said: “I am pleased to announce the amendments to the CBB Rulebook to cover within its scope innovative business models using digital technology and platforms to provide small value consumer loans especially for medium and small enterprises and individuals. Consumers and small businesses are expected to benefit from such new business models”.

These amendments are part of a series of amendments made recently by the CBB to the CBB Regulatory Framework and regulations governing licensed financial services to keep pace with the developments in the industry, especially in the field of financial technology (Fintech).

Central Bank of Bahrain Enhances Fintech Regulatory Sandbox to Boost Innovation

Manama, Bahrain – 7 December 2021 – As part of its efforts to further develop the FinTech ecosystem and enhance the competitiveness of the financial services sector, and in line with the Kingdom’s overall strategy to transition towards a diverse and digital economy,  the Central Bank of Bahrain (CBB) has announced its new Regulatory Sandbox Framework which will allow FinTech firms to test and experiment their ideas and solutions related to the sector in a more efficient and effective environment.

Significantly, the new Framework enhances the eligibility criteria for participation in the Regulatory Sandbox, as well as streamlines the entire Sandbox process to ensure a more phased and consistent approach to support testing.

The Regulatory Sandbox, which is open to existing CBB licensees and other local and foreign firms was first introduced in 2017 in an effort to enhance the local FinTech ecosystem and is being overseen by the CBB’s FinTech & Innovation Unit. The Sandbox has gained significant interest from local, regional and global start-ups and a number of companies have successfully completed testing their solutions.

In this regard, Ms. Yasmeen Al Sharaf, Director of Fintech and Innovation Unit at CBB, commented: “The revised Regulatory Sandbox Framework serves as a continuation of the CBB’s efforts to keep pace with technological developments and to ensure an appropriate ecosystem to adopt modern banking services through fintech solutions, with the ultimate objective of promoting a culture of innovation in the financial sector and national economy. The new framework will facilitate participation and enhance collaborations between startups and fintechs and the sector, in order to provide better financial services in the Kingdom.”

The new Regulatory Sandbox Framework, which includes the eligibility criteria, filing requirements and the new process, is now available on CBB’s website through the following link: https://www.cbb.gov.bh/fintech/

CBB participates in WEF Publications

Manama, Kingdom of Bahrain – 2 December 2021 – As part of her membership at the World Economic Forum’s (WEF) Digital Currency Governance Consortium (DCGC), Director of FinTech & Innovation Unit at the Central Bank of Bahrain (CBB) Yasmeen Al-Sharaf, has contributed in the preparation and review of two whitepapers published by WEF as a part of a series of whitepapers composed of eight parts, exploring a number of critical topics relating to Central Bank Digital Currencies (“CBDC’s”) and stablecoins.

As a member of WEF’s Digital Currency Governance Consortium, Ms. Al-Sharaf has participated in a series of virtual workshops and roundtables over the course of 2020-2021 to address key questions and governance gaps relating to digital currencies, which led to the publication of the whitepapers. The CBB’s participation aims at benefiting from sharing experience and views and enhancing knowledge of this emerging field.

The series of whitepapers published by WEF aim to inform policy-makers, digital currency issuers, financial and civil society organizations and other stakeholders on the capabilities, risks and the available policy and technology choices with respect to CBDC’s and stablecoins.

The whitepapers contributed by Ms. Al-Sharaf, explore the potential role that central banks and public institutions could take with respect to CBDC’s and stablecoins, highlighting key opportunities for public-private and intergovernmental cooperation and the policy gaps and inconsistencies from existing approaches towards retail CBDC’s and stablecoins and provides an initial framework for policy-makers to address these gaps and inconsistencies.

The CBB continues to support the development of its workforce, including participation in such international forums, in the light of increasing developments in the financial sector.

You can view the whitepaper series on the WEF website:

https://www.weforum.org/reports/digital-currency-governance-consortium-white-paper-series

 

 

 

Head of Fintech & Innovation Unit at CBB named in Women in FinTech Powerlist 2020

Manama, Bahrain – 25 March 2020 – Innovate Finance UK announced  “The Women in FinTech Powerlist 2020” which included Head of Fintech & Innovation Unit at the Central Bank of Bahrain (CBB) Ms. Yasmeen Al Sharaf. Ms. Al Sharaf was selected for the second consecutive year amongst the Policy Makers and Regulatory Experts category which caters for Regulators, Policy Advisors and Compliance Professionals.

The Women in FinTech Powerlist initiative was launched to recognize women leading innovation in financial services and has recently published the list of 200 women shaping the future of finance. Innovate Finance received over 1000 applications for this year’s list which incorporates 7 different categories including; Senior Leaders, Rising Stars, Technology Professionals, Investors, Policy Makers and Regulatory Experts, Marketers & Communicators and Financial & Professional Services; resulting in applications and nominations from around the world which were reviewed and finalized by a panel of independent judges and experts in FinTech. It is worth noting that Innovate Finance UK is an Independent industry body that represents and advances the global FinTech community. Innovate Finance’s focus ranges from startups to global financial institutions to investors, professional services firms, and global FinTech hubs.

On this occasion Ms. Al Sharaf commented: “As a Bahraini woman in the FinTech field, I am honored to have this opportunity to represent the Kingdom on the Women in FinTech Powerlist 2020, for the second year running. I am also exceedingly grateful for the opportunities being granted to empower Bahraini women to reach such achievements in local and international forums.  On this occasion, I would like to extend my appreciation to His Excellency Mr. Rasheed Mohamed AlMaraj, Governor of the Central Bank of Bahrain, for his continued trust, guidance and support and for his invaluable role in encouraging female inclusivity & leadership within the financial sector.”

Mr. Rasheed Al Maraj, CBB Governor, congratulated Ms. Yasmeen Al Sharaf on her selection amongst the leading personalities in FinTech for 2020, saying: “We commend this achievement and the role of women across all sectors including FinTech. We take pride in all the female competencies at the CBB for their hard work and active participation on both local and international levels, and particularly in light of the technological developments in the banking and financial sector.”

 

CBB and BAB hold forum on FinHub973 for the financial sector

Manama, Kingdom of Bahrain – 6 March 2021 – The Central Bank of Bahrain (“CBB”), in cooperation with the Bahrain Association of Banks (“BAB”), held a forum for banks and insurance companies regarding FinHub973 to discuss the progress of the platform which was launched in October 2020 in cooperation with Fintech Galaxy. 

The virtual forum was attended by Mr. Rasheed Mohammed AlMaraj, Governor of the CBB, Dr. Waheed Al Qassim, CEO of BAB, Mr. Khalid Humaidan, Chief Executive of the Bahrain Economic Development Board (EDB),  and CEOs of retail banks and insurance companies. 

FinHub 973 is the MENA region’s first cross-border digital innovation platform that connects and facilitates collaboration between financial institutions and FinTechs under the supervision of the central bank. FinHub973 enables local and global FinTechs to connect seamlessly with Bahrain’s financial institutions to explore, test, and prototype new and innovative solutions on a centralized digital sandbox.  

During the forum, the latest developments in FinHUb 973 were presented, most notably the open API Sandbox, which will enable banks and other financial institutions in Bahrain to seamlessly integrate with FinTechs to support them on their digital transformation journeys. A new feature of the platform was also highlighted, namely providing compliance as a service for partner banks and financial institutions with Bahrain Open Banking Framework. 

On this occasion, Mr. Rasheed Al Maraj, Governor of the CBB said: “This initiative is an opportunity to stimulate innovation opportunities and enhance cooperation between the CBB, financial instituions and FinTechs to explore and create new and innovative solutions through a centralized virtual environment. Such an initiative supports seamless transition towards digital banking as part of our continuous digital transformation strategy for the financial sector in the Kingdom”. Mr. Al Maraj encouraged financial institutions to participate in this platform and benefit from the opportunities resulting from collaberating with FinTechs.  

Dr. Waheed Al-Qassem, CEO of BAB, said: “This smart initiative by the CBB will boost the development of financial technology and provide the necessary support for incubation, guidance and financing of FinTechs, and enhance this field within the financial sector and wider economy in line with the Bahrain Economic Vision 2030”. 

Dr.  Al Qassim added: “FinHub 973 become a comprehensive benchmark for the development of financial technology in Bahrain, based on the shared focus and talent provided by the partner financial institutions and stakeholders of the platform.”  Dr. Al Qassim expects this platform to achieve more success, especially as financial technology is an essential part of digital transformation in the Kingdom of Bahrain, and the need to adopt this new technology by the public. 

Head of Fintech & Innovation Unit at CBB named in Women in FinTech Powerlist 2019

Manama, Bahrain – 9 March 2020 – Innovate Finance UK announced  “The Women in FinTech Powerlist 2019” which included Head of Fintech & Innovation Unit at the Central Bank of Bahrain (CBB) Ms. Yasmeen Al Sharaf. Ms. Al Sharaf was selected amongst the Policy Makers and Regulatory Experts category which caters for Regulators, Policy Advisors and Compliance Professionals.

The Women in FinTech Powerlist initiative was launched to recognize women leading innovation in financial services and has recently published the list of 200 women shaping the future of finance. Innovate Finance received over 650 applications for this year’s list which incorporates 7 different categories including; Senior Leaders, Rising Stars, Technology Professionals, Investors, Policy Makers and Regulatory Experts, Marketers & Communicators and Financial & Professional Services; resulting in applications and nominations from around the world which were reviewed and finalized by a panel of independent judges and experts in FinTech. It is worth noting that Innovate Finance UK is an Independent industry body that represents and advances the global FinTech community. Innovate Finance’s focus ranges from startups to global financial institutions to investors, professional services firms, and global FinTech hubs.

On this occasion Ms. Al Sharaf commented: “I am honored to have been selected amongst 200 other inspirational women from all around the world, to be part of Innovate Finance’s “Women in FinTech Powerlist 2019” under the ‘Policy Makers & Regulatory Experts’ segment. I am proud to be representing Bahraini women in the FinTech field and I would like to take this opportunity to thank Innovate Finance for this selection and for their recognition and I look forward to seeing more recognitions for successful Bahraini women.”

The Central Bank of Bahrain (CBB) extends its congratulations to Ms. Yasmeen Al Sharaf on this achievement and praises the role of women across all sectors including FinTech.

CBB participates in IIF Digital Financial Inclusion Summit

Manama, Kingdom of Bahrain – 17th November 2019 – Head of Fintech and Innovation Unit at the Central Bank of Bahrain (CBB), Yasmeen Al Sharaf, participated as a speaker at the Digital Financial Inclusion Summit organized by the Institute of International Finance (IIF) on 6 – 7 November in Cairo. The summit brings together key global and regional financial sector leaders, decision makers, experts and entrepreneurs to discuss digital financial inclusion, and the role of financial services in meeting the requirements of the digital economy, cloud computing and blockchain.

During a panel session entitled “Transforming through public and private cooperation”, Al Sharaf highlighted the fact that Bahrain has a track record as a business-friendly environment and is home to the Gulf’s largest financial services sector.

Ms. Al Sharaf also discussed how the CBB’s Regulatory Sandbox has become a catalyst for innovation, as startups and financial institutions come together to test out their innovative financial solutions.

Al Sharaf emphasized that despite the advancement of electronic payment systems and the CBB’s initiatives in encouraging the use of cashless methods, the CBB will continue its efforts in integrating the latest technologies and solutions to enhance financial inclusion in line with the digital economy requirements.

CBB wins key Fintech award

Manama, Bahrain – 2nd October 2019 – The Central Bank of Bahrain (CBB) has won a key award for its initiatives in the area of Financial Technology (Fintech).

The Most Innovative Fintech Regulator Of The Year was conferred by Fintech Galaxy, a digital crowdfunding platform, during FinX 2019, a Fintech event held on 2 October 2019 in Dubai, UAE.

The Award recognizes the regulation entity that is actively investing and improving their fintech startup seamless experience, and was conferred on the CBB for its initiatives in introducing and developing both the regulatory framework and ecosystem needed to support the ambition of fintech startups and existing financial institutions.

“We are pleased to receive this recognition which represents the major strides taken by the Kingdom of Bahrain in advancing in the Fintech arena, and in particular, the CBB’s reputation as a forward-thinking regulator. These initiatives are a continuation of the CBB’s efforts in offering the right mix of policies and products to develop and enhance the quality and competitiveness of services in the financial sector, and we are always open to embracing innovation and new technologies.” said Mr. Khalid Hamad, Executive Director of Banking Supervision at the CBB.

The CBB also participated in a panel alongside banking and Fintech experts from the region. The panel discussed the creation of a regional Fintech hub, the power of collaboration between Fintech companies and banks, and customer experience at the core.

It is worth noting that Team Bahrain, which was represented by the CBB, the Bahrain Economic Development Board (EDB) and Bahrain Fintech Bay, has previously won the MENA Fintech Hub of the Year Award at FinX 2018.

Recent initiatives by the CBB to foster innovation in the financial sector following the introduction of the Regulatory Sandbox in 2017 and setting up a dedicated Fintech and Innovation Unit, include issuing regulations for Open Banking, Crypto-asset Platform Operators, Digital Financial Advice (“robo-advisory”), Crowdfunding, Cloud Computing and Insurance Aggregators.

 

 

Central Bank of Bahrain issues final rules on Crypto-asset services and Crypto-asset exchanges

Manama, Bahrain – 25th February 2019 – The Central Bank of Bahrain (“CBB”) has issued the final rules on a range of activities relevant to Crypto-assets. Crypto-assets operating under block chain distributed ledger systems have drawn much regulator attention globally, and the CBB rules are aimed at ensuring that the related activities are brought within the regulatory perimeter and are subject to comprehensive regulatory and supervisory measures.

 

Mr. Khalid Hamad, Executive Director – Banking Supervision, said: “We will continue to enhance our regulatory framework in order to keep pace with the innovations taking place in the major financial centres around the globe. The CBB’s introduction of the rules relating to crypto-assets is in line with its goal to develop a comprehensive rules for the FinTech eco-system supporting Bahrain’s position as a leading financial hub in the MENA region.”

 

The CBB Crypto-asset rules deal with the rules for licensing, governance, minimum capital, control environment, risk management, AML/CFT, standards of business conduct, avoidance of conflicts of interest, reporting, and cyber security for crypto-asset services. They also cover supervision and enforcement standards including those provided by a platform operator as a principal, agent, portfolio manager, adviser and as a custodian within or from the Kingdom of Bahrain.

 

In addition, for those licensed by the CBB as crypto-asset exchanges, the regulatory framework also contain rules relevant to order matching, pre and post trade transparency, measures to avoid market manipulation and market abuse, and conflicts of interest.

 

Recognising the emerging nature of these activities and the risks involved, the CBB rules also specify, among other measures the following:

  • Need for enhanced due diligence (EDD) when on boarding new clients;
  • Requirements to ensure that no encrypted safe custody accounts or “wallets” are maintained that cannot be retrieved;
  • A mandate to ensure that keyman risks are adequately managed including by having the necessary insurance covers;
  • The clients are educated and given clear instructions for use of the safe custody wallets.
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