BMA issues first volume of Rulebook
The Bahrain Monetary Agency (BMA) has issued the first volume of its Rulebook, which will eventually incorporate all regulations applicable to BMA licensees.
The different volumes of the Rulebook are aimed at serving as convenient ‘one stop’ reference manuals.
Volume 1 of the Rulebook, issued on 14th October 2004, comprises all regulations currently applicable to conventional full commercial banks (FCBs), offshore banking units (OBUs) and investment banks (IBs).
Work is also progressing on Volume 2, for Islamic financial institutions, and Volume 3, for insurance firms. BMA expects to issue these in January 2005.
Further volumes, which will cover investment business and other financial services providers, will follow later in 2005.
The Rulebooks replace the regulatory circulars issued by the BMA since its establishment in 1973. For the banking industry, the issuance of the Rulebooks does not entail or imply any new regulations.
“The objective is to enhance the transparency of BMA requirements. It also makes it easier for licensees, or potential licensees, to refer to all applicable rules,” said Dr. Khalid Abdulla Ateeq, Executive Director, Banking Supervision, at the BMA.
The review and compilation process has also allowed BMA to eliminate duplication of certain requirements as well as enhance clarity.
© 2004 Mena Report (www.menareport.com)