Central Bank of Bahrain sets up Fintech Unit

Manama : As part of the Central Bank of Bahrain’s (CBB) ongoing initiatives towards financial digital transformation in the Kingdom and developments in digital financial services, the CBB announced the establishment of a dedicated Fintech Unit to ensure the best services are provided to individual and corporate customers in the financial sector.

The announcement was made following the CBB’s Board meeting yesterday after the board approved the recommendation to establish the Unit for this purpose. This follows the CBB’s recent initiatives, which include a Regulatory Sandbox that will allow startups and fintech firms to provide innovative banking solutions, which include four companies to date, in addition to the issuance of crowdfunding regulations for both conventional and Sharia compliant services.

The proposed Fintech Unit will be responsible for the approval process to participate in the Regulatory Sandbox, supervision of licensed companies’ activities and operations, including cloud computing, payment and settlement systems, and monitoring technical and regulatory developments in the fintech field. 

“We are pleased to announce the new Fintech Unit at the CBB, which will enable us to allow industry players to freely apply innovative products while maintaining the overall safety and soundness of the financial system. This is a major step in the development of the current ecosystem in place to encourage growth in the Fintech industry, and we are keen on welcoming more local, regional, and international fintech firms in the Kingdom,” said Rasheed Al Maraj, Governor of the Central Bank of Bahrain.