Central Bank of Bahrain

The primary activity of the Central Bank of Bahrain (CBB) is to ensure the monetary and financial stability of the Kingdom of Bahrain. It acts as the single, integrated regulatory authority for the country's entire financial sector. The CBB supervises and regulates conventional and Islamic banks, insurance companies, capital markets, investment firms, as well as specialized players and FinTech initiatives.

The main products and services offered by the CBB include:

• Regulation and supervision of financial institutions (banks, insurance, capital markets, etc.)
• Issuance of the national currency and management of reserves
• Implementation of monetary policy and management of interest rates
• Management of payment and settlement systems
• Publication of economic, statistical and regulatory reports
• Consumer protection and handling of complaints related to the financial sector
• Development of financial innovation (FinTech, open banking, regulatory sandbox, etc.)

The CBB's target market is the entire financial sector of Bahrain, including local and international financial institutions operating in the country, as well as consumers and businesses using financial services.

The history of the Central Bank of Bahrain (CBB) officially began with its establishment on September 6, 2006, following the enactment of the “Central Bank of Bahrain and Financial Institutions Law 2006.” The CBB is a public entity that succeeded the former Bahrain Monetary Agency, thereby consolidating the regulation and supervision of the entire financial sector of the Kingdom of Bahrain.

The key stages of its development include:

• Establishment (2006): Foundation of the CBB to replace the Bahrain Monetary Agency, with the main mission of maintaining monetary and financial stability and acting as the sole regulator of the financial sector.
• Integrated regulation: The CBB now supervises all segments of the financial sector, including conventional and Islamic banks, insurance, capital markets, investment companies, and fintechs.
• Innovation and Fintech: Launch of a regulatory framework for fintech, including a “Regulatory Sandbox” to encourage innovation in financial services.
• Market development: Introduction of Islamic financial products such as Sukuk Al-Salam and Ijara Murabaha, as well as the regular management of Treasury bill issuances.
• Currency Museum (1999): Opening of a museum dedicated to the monetary history of Bahrain, well before the official creation of the CBB, highlighting the importance of financial culture in the country.
• Strategic adaptation: Regular revisions of regulatory requirements, launch of modules for new products (e.g., “Buy Now Pay Later”), and adaptation to developments in the global financial sector.

The CBB today plays a central role in Bahrain’s economy, with a significant contribution from the financial sector to GDP and supervision of nearly 400 financial institutions, while pursuing initiatives for innovation and modernization of the sector.

The founder of the Central Bank of Bahrain (CBB) is the government of the Kingdom of Bahrain, which established the central bank in 2006, succeeding the Bahrain Monetary Agency. The main members of the leadership team include:

Governor: Rasheed Mohammed Al Maraj
First Deputy Governor: Khalid Salem Hamad
Deputy Governor: Yousef Abdulla Al Fadhel
Executive Directors: Several executive directors oversee key departments such as banking supervision, regulation, compliance, risk management, and financial stability.

The leadership team is composed of experienced professionals in the banking and financial sector, playing a central role in the regulation and supervision of the financial sector in Bahrain.