Arab Today, arab today islamic finance sector watchdog in the offing
Last Updated : GMT 06:10:29
Arab Today, arab today
Arab Today, arab today

Islamic finance sector watchdog in the offing

Arab Today, arab today

Arab Today, arab today Islamic finance sector watchdog in the offing

Central Bank of Bahrain (CBB)
Manama - BNA

The Central Bank of Bahrain (CBB) is drafting legal documentation to set up a Sharia board of scholars that would oversee the kingdom's Islamic finance sector, in a step that could help the market compete with regional rivals.
The bank already has a Sharia board but its scope is limited to vetting its own products. A country-level approach - which is so far rare in the Gulf - could help to limit differences between products, speed the design of new products and boost investor confidence, according to the Bahrain-based Gulf Daily News (GDN).
A "legal instrument" is now being prepared that would set out details of the Sharia board, Khalid Hamad, the central bank's executive director of banking supervision, said.
Oman's central bank set up a Sharia supervisory board last October but unlike Oman, Bahrain has positioned itself as a regional financial centre, with historical links to Saudi and Kuwaiti financial institutions, a status that in recent years has seen growing competition from Dubai and Doha.
"This will give us an edge to other markets, allowing more products to be attractive," SICO Bahrain chief executive Najla Al Shirawi.
Islamic banks in the Gulf have traditionally practised self-regulation on the issue of religious permissibility, using their own individual Sharia boards to ensure the Sharia-compliance of their products.
This approach proved popular for Islamic banks developing their own bespoke products, but as the industry matures, attention is shifting to facilitating volume transactions which are cost- and time-effective.
"More innovation is needed in this space, in particular tools such as Sharia-compliant repurchase agreements and profit rate swaps. These are doable but need to be more widely accepted across the region," said Shirawi.
As it stands now, if tools such as Islamic repurchase agreements are to be used, clients face a cumbersome process of clearing transactions with every financial institution involved, she added.
The CBB also plans to introduce rules to expand its internal Sharia review and audit functions, while making it mandatory for banks to undergo an independent external Sharia audit.
The UAE is the only other regulator in the Gulf to have announced a plan to adopt a centralised Sharia approach. This would be backed by specific legislation, but a firm timetable has not been given for the plan, GDN reported.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today islamic finance sector watchdog in the offing Arab Today, arab today islamic finance sector watchdog in the offing

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today islamic finance sector watchdog in the offing Arab Today, arab today islamic finance sector watchdog in the offing

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
Arab Today, arab today Seeks to move past rift with Israel

GMT 08:00 2017 Monday ,08 May

Seeks to move past rift with Israel
View News in Arabic - Business: اقتصاد عربي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday