The Central Bank of Bahrain (CBB) is the central bank of the Kingdom of Bahrain, established in 2006 and headquartered in Manama, the capital. It is a public legal entity responsible for maintaining the monetary stability of the Kingdom of Bahrain. At the same time, as the sole regulator of Bahrain's financial industry, its responsibilities also cover the banking, insurance, investment business and capital markets activities in the country.

History

See: History of Bahrain

On August 14, 1971, Bahrain gained independence from the United Kingdom. By 1973, the Emir of Bahrain issued a decree establishing the Bahrain Monetary Authority to perform central bank and financial supervision functions. The Bahrain Monetary Authority has been in operation for 33 years. On September 6, 2006, the King of Bahrain issued Decree No. 64 of 2006, which immediately implemented the Central Bank of Bahrain and Financial Institutions Group Law (CBB Law) and repealed the Bahrain Monetary Authority Law (BMA Law) originally promulgated by Decree No. 23 of 1973. This move established the Central Bank of Bahrain as the successor to the Bahrain Monetary Authority, and the newly established central bank became the single regulator of the financial services industry in the Kingdom of Bahrain. Compared with the original Monetary Authority, it strengthened its independence, simplified regulatory procedures, and expanded its scope of authority.

Objectives and Functions

Objectives

The Central Bank of Bahrain is authorized under the Central Bank of Bahrain and Financial Institutions Group Act to pursue the following objectives:

• Formulate and implement monetary policy, credit policy and other Financial Institutions Group related policies;
• Provide effective central bank services to the Royal Government and Financial Institutions Group;
• Develop the domestic financial industry;
• Protect the interests of depositors and consumers of financial services and enhance Bahrain's credibility as an international financial center;

Authority

The Central Bank of Bahrain, as stipulated in the Central Bank and Financial Institutions Group of Bahrain Law, is entrusted with the following powers:

• to issue the national currency;
• to implement moderately loose monetary policy to maintain the stability of the currency and the Kingdom's monetary system;
• to take appropriate measures to respond to changes in the regional and international economic environment;
• to regulate and develop the Financial Institutions Group, to handle the issuance of licenses and to supervise its activities;
• to act as a bank to the government;
• to act as an economic advisor to the government;
• to manage the government's gold and foreign exchange reserves ;
• Represent the Royal Government in international economic affairs;
• Promote and encourage innovation in the financial services industry;
• Safeguard the legitimate rights and interests of the Licensed Financial Institution Group to its clients;
• Other matters that should be performed according to law.

Organizational structure

The highest decision-making body of the Central Bank of Bahrain is the Board of Directors, which shall be composed of seven persons by law, including a representative of the Ministry of Finance. All seven members are appointed by the King of Bahrain for four-year terms (renewable). The Governor of the Central Bank of Bahrain is appointed by the King on the recommendation of the directors for five-year terms (renewable). The following is the organizational chart of the Central Bank of Bahrain

Board Members

List of Board Members of the Central Bank of Bahrain (2008-2012) Job Title Chairperson Qassim Mohammed Fakhro قاسم محمد فخرو Vice Chairperson (Governor) Rasheed Mohammed Malaj Rasheed Mohammed Al Maraj رشيد محمد المعراج Member Youssef Abdulla Hamood Yousif Abdulla Humood يوسف عبدالله حمود Zakaria Hejres Zakaria Hejres زكريا هجرس Mohammed Hussein Yateem Mohammed Hussain Yateem محمد حسين يتيم Sheikh Mohammed bin Khalifa bin Ahmed Al Haley Shaikh Mohammed bin Khalifa bin Ahmed Al Khalifa سعادة الشيخ محمد بن خليفة بن أحمد آل خليفة