The Central Bank of Bahrain (CBB) plans to increase its investment in technology by threefold over the next three years as part of a plan to develop Bahrain to the region's primary banking hub.
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According to the bank's governor, Khalid Humaidan, the strategy is designed to enhance market security and streamline regulatory oversight.
The governor made his remarks at a conference in Bahrain, which were reported by Reuters,
“Traditionally, central bankers viewed growth and stability as a trade-off. With the adoption of digitalisation in financial services, that equation changes completely – higher growth and greater stability can co-exist," said Humaidan. “When regulatory oversight is tech-enabled, being licensed by the Central Bank becomes a recognised brand seal."
Financial services currently account for around 20% of Bahrain's GDP. And while this percentage is expected to stay the same for the next decade, the hope is that it is a 20% share of a larger and more diversified economy, said Humaidan.
Key to this ambition is attracting more foreign direct investment, something which will be partially dependent on a moden banking system with a comprehensively digital infrastructure.
“Our primary job as a regulator is to protect user privacy, secure assets, and ensure a level playing field so the public can decide which technologies work best," said Humaidan.