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Bahrain: Islamic finance sector watchdog in the works

By  |  February 5, 2015

The Central Bank of Bahrain is drafting legal documentation to set up a sharia board that would oversee the kingdom’s Islamic finance sector, in a step that could help the market compete with regional rivals.

“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,” Shirawi bank executive said.

The UAE is the only other regulator in the Gulf to have announced a plan to adopt a centralized Sharia approach. This would be backed by specific legislation, but a firm timetable has not been given for the plan.

 

Full Content: Gulf Daily News

 

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