CBB, in cooperation with the Bahrain Economic Development Board, Bank ABC, ila Bank, BENEFIT, NBB, and Bahrain Islamic Bank, announced the launch of FinHub 973, the first comprehensive digital fintech lab in the region, regulated by the Central Bank of Bahrain. The new platform will aim to create a collaborative ecosystem in the fintech sector by establishing a gateway for investment opportunities in the region, while fostering innovation and supporting integration between financial institutions and fintech startups. Additionally, CBB launched the Bahrain Open Banking Framework to ensure holistic implementation of open banking services by the industry.
FinHub 973 will be powered by Fintech Galaxy’s FinX22 platform, which is a cloud-based open innovation platform that complies with the best international technical standards. The FinX22 platform will offer an open banking Application Programming Interface (API) sandbox that enables fintech startups to develop, test, and deploy fintech solutions. FinHub 973 will aim to connect financial institutions in Bahrain and the region to fintech firms worldwide. The digital lab will also offer matchmaking and crowdsourcing capabilities, which will help contribute to the design of effective fintech solutions, ultimately spurring disruptive and transformative innovation across the financial services industry.
Bahrain Open Banking Framework includes detailed operational guidelines, security standards, customer experience guidelines, technical open Application Programming Interface (API) specifications, and the overall governance framework needed to protect customer data. These standards follow the comprehensive rules on open banking that were previously issued in December 2018. The framework was developed in collaboration with Deloitte and in consultation with the retail banks and other financial institutions in Bahrain.
Additionally, the Board of Directors of CBB met for the fourth time this year in October 2020. At the meeting, the Board reviewed the topics on the agenda, including the CBB performance report and the latest developments in the financial sector for the third quarter of 2020. The Board was briefed on the measures taken by CBB based on the royal directives from the Cabinet meeting, which was held on September 14, 2020 and wherein all banks were to defer loan payments until the end of the year in a manner that does not affect the liquidity and financial solvency of banks. The Board also viewed presentations prepared by consultants appointed by the CBB on digital transformation in the financial sector and open banking.
- Press Release on Fintech Platform
- Press Release on Bahrain Open Banking Framework
- Press Release Board Meeting
Keywords: Middle East and Africa, Bahrain, Banking, Fintech, API, Artificial Intelligence, FinHub 973, Open Banking, Governance, COVID-19, Loan Repayment, CBB
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous ArticleAPRA Consults on Reporting Standard for Credit Risk Management
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.
ECB published results of the quarterly lending survey conducted on 143 banks in the euro area.
ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.
EBA published the annual report on asset encumbrance of banks in EU.
MAS revised the guidelines that address technology and cyber risks of financial institutions, in an environment of growing use of cloud technologies, application programming interfaces, and rapid software development.
FED updated the reporting form and instructions for the FR Y-9C report on consolidated financial statements for holding companies.
EBA issued a consultation paper on the guidelines on monitoring of the threshold and other procedural aspects of the establishment of intermediate EU parent undertakings, or IPUs, as laid down in the Capital Requirements Directive.
EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.
BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.