The Central Bank Of Bahrain (CBB) Is The Central Bank Of The Kingdom Of Bahrain, Established In 2006 And Headquartered In Manama. 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
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Of 2006, Which Immediately Implemented The Central Bank Of Bahrain And Financial Institutions Group Law (CBB Law) And Repealed The Bahrain Monetary Authority Law (BMA Law) Originally Promulgated By Decree No. 23 Of 1973.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 Mandated 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 For The Government;
- To Act As An Economic Advisor To The Government;
- To Manage The Government's Gold And Foreign Exchange Reserves ;
- Participate In International Economic Affairs On Behalf Of The Royal Government;
- Promote And Encourage Innovation In The Financial Services Industry;
- Safeguard The Legitimate Rights And Interests Of Licensed Financial Institution Groups To Customers;
- Other Matters That Should Be Performed According To Law.
