In 2016, the GOB established a fund that is new to inject greater liquidity when you look at the Bahrain Bourse, well worth USD 100 million. The Bahrain Liquidity Fund is supported by a range market participants and can become an industry manufacturer, supplying two-way quotes of all for the listed shares with a fair spread to enable investors to earnestly trade their shares. Despite these efforts, the marketplace stays fairly little in comparison to other people in the area.
The GOB in addition to Central Bank of Bahrain are users of the IMF and completely compliant with Article VIII.
Cash and Bank System
The Central Bank of Bahrain (CBB) could be the solitary regulator associated with whole monetary sector, with a built-in regulatory framework addressing all economic solutions given by main-stream and Islamic financial institutions. Bahrain’s banking sector stays quite healthy despite suffered lower international oil costs. Bahrain’s banks remain well capitalized, and there’s adequate liquidity to make sure a healthy and balanced rate of investment. Bahrain stays a monetary center when it comes to GCC region, though many economic businesses have relocated their local head office to Dubai throughout the decade that is last. The GOB is still a motorist of innovation and expansion within the Islamic finance sector. In 2018, Bahrain ranked while the GCC’s leading Islamic finance market and 2nd away from 92 nations global, according to your ICD-Thomson Reuters Islamic Finance developing Indicator.
Bahrain has a very good system that is regulatory encourages profile investment, therefore the CBB has completely implemented Basel II criteria, while wanting to bring Bahraini banking institutions into compliance with Basel III requirements.