The Central Bank of Bahrain (CBB) proposed to amend the cybersecurity requirements, in addition to amending the General Requirements Module of the CBB Rulebook. The central bank also launched its second annual series of nationwide fintech innovation challenges, called the Bahrain Open Banking Supernova 2022.
The Bahrain Open Banking Supernova 2022 (also Supernova 2022) will be hosted on FinHub 973, the CBB’s Digital Lab,, and the open innovation firm Fintech Galaxy. The Supernova 2022 will see Bahrain-based financial institutions present real market challenges related to financial services, aimed at finding customer-centric solutions revolving around Open Banking use cases. Innovators and fintech start-ups will have access to an API sandbox with 330+ APIs and simulated datasets from local and regional banks to enable rapid and seamless proof of concepts (PoCs). The challenges provide innovators with the ability to accelerate testing of their innovations to enrich the financial services industry in Bahrain with novel solutions across fintech, regtech, and insurtech. Start-ups and tech firms will be able to submit their proposals via the FinHub 973 digital platform, addressing problem statements under the following themes:
- BENEFIT Company—open banking for consumer lending (pitch competition date May 26, 2022)
- Bank ABC—autonomous financial advisor leveraging open banking (pitch competition date June 30, 2022)
- Bahrain Islamic Bank (BisB)—Straight-Through Processing solution (pitch competition date July 05, 2022)
CBB issued amendments to the General Requirements Module of CBB Rulebook for conventional banks (Volume 1) and Islamic banks (Volume 2). CBB issued the amendments, following its observation that companies operating in the CBB’s Regulatory Sandbox as open banking service providers and Account information service providers/payment initiation service providers (AISPs/PISPs) are facing delays and difficulties in accessing the developer portal (testing facility) of retail banks. According to the amendments, conventional and Islamic retail bank licensees must establish and make available a testing facility, in accordance with the operational guidelines included in the Bahrain Open Banking Framework, to the authorized AISPs and PISPs, the companies operating in the CBB’s Regulatory Sandbox as open banking service providers, and the AISPs/PISPs that are granted in-principle confirmation to proceed with the CBB’s licensing process. No sensitive information must be shared through the testing facility. Licensees must display a link to the testing facility on their website.
CBB proposed amendments to cybersecurity requirements in Volumes 1 to 5 of the CBB Rulebook, regarding the use of e-mail domains and URLs for communication with customers. CBB proposed that licensees must use a single unified private e-mail domain or its subdomains for communication with customers to prevent abuse by third parties. Licensees must not utilize third-party email domains for communication with customers. CBB also proposed that licensees must not use URLs or any other clickable links in SMS, e-mails, or other short messages sent to customers. CBB requested comments on the proposed amendments until June 05, 2022.
- Press Release on Fintech Challenge
- Amendments to General Module of Rulebook
- Consultation on Cybersecurity Requirements
Keywords: Middle East And Africa, Bahrain, Banking, Fintech, Regtech, CBB Rulebook, Islamic Banks, Open Banking, Lending, Regulatory Sandbox, CBB, Cyber Risk
Previous ArticleACPR Requests Applications for Tech Sprint, Issues Reporting Updates
The Australian Prudential Regulation Authority (APRA) has published the findings of its latest climate risk self-assessment survey conducted across the banking, insurance, and superannuation industries.
The French Prudential Supervisory Authority (ACPR) published a notice related to the methods for calculating and publishing prudential ratios under the Capital Requirements Directive (CRD IV) and the minimum requirement for own funds and eligible liabilities (MREL).
The Financial Stability Institute (FSI) of the Bank for International Settlements recently published a paper proposing a framework for classifying financial stability regulation as either entity-based or activity-based.
The European Insurance and Occupational Pension Authority (EIOPA) published the risk dashboard based on Solvency II data and the final version of the application guidance on climate change materiality assessments and climate change scenarios in the Own Risk and Solvency Assessment (ORSA).
The European Banking Authority (EBA) and the European Central Bank (ECB) published their responses to the consultations of the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) on sustainability-related disclosure standards.
A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.
The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.
The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy.
The European Union published, in the Official Journal of the European Union, an opinion from the European Economic and Social Committee (EESC); the opinion is on the proposal for a regulation to amend the Capital Requirements Regulation (CRR).
HM Treasury published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment.