Bahrain central bank governor warns regional regulators to proceed with caution
BAHRAIN – Middle Eastern regulators should proceed with caution despite the recent economic boom in the region, according to Rasheed Al Maraj, the governor of the Central Bank of Bahrain (CBB).
Speaking at the Gulf Cooperation Council’s (GCC) annual regulatory summit, Al Maraj warned that the subprime crisis, the credit crunch and the Société Générale rogue trader event, highlighted the risks to the region.
“This year's conference is taking place against a backdrop of fresh challenges being posed by a number of global factors and their interplay with regional developments,” said Al Maraj. “In particular, these incidents underscore the need for good risk management and effective internal controls by financial institutions. The role of the regulator in addressing these challenges is crucial.”
Bahrain’s central bank has also introduced a Basel II-compliant framework for Islamic markets. “The recent volatility in international stock markets underscores the need for transparency, which the CBB has achieved through enhanced disclosure standards introduced as of the start of this year,” said Al Maraj.
More on Risk Management
ABSTRACT This experimental study investigates the behavior of banks in a large-value payment system. More specifically, we look at the reactions of banks to disruptions in the payment system and theway...
ABSTRACT Central counterparties (CCPs) performed extremely well during the recent financial crisis. Clearing through CCPs has since been promoted by legislators around theworld as a way to mitigate risk...
ABSTRACT Nonbanks such as central counterparties (CCPs) are a useful lens through which to see how regulators view the role of the lender of last resort (LOLR). This paper explores the avenues that are...
Nonbanks such as central counterparties (CCPs) are a useful lens through which to see how regulators view the role of the lender of last resort. The first paper in this issue, "Limiting taxpayer "puts":...
Sign up for Risk.net email alerts
Sponsored video: Elseware
Oxford professor David Vines argues that the carrot is as important as the stick
Sponsored webinar: IBM
Watch highlights of this year's London conference
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.