Banking
From The Report: Bahrain 2018
View in Online Reader

Bahrain’s reputation as a regional financial centre rests in part on the early flourishing of its banking industry. The country’s first modern bank was established nearly 100 years ago following an agreement between the kingdom’s ruler at the time, Sheikh Isa bin Ali Al Khalifa, and the UK-owned and Indian-headquartered Oriental Bank. As Bahrain’s banking sector completes its third full year of operation in a lower oil price environment, profitability and asset growth in the industry has turned flat. However, thanks to a robust regulatory framework there has been no significant deterioration in asset quality, and there is sufficient liquidity in the system to allow banks to pursue lending opportunities. The sector has also seen some interesting regulatory changes over the past year, aimed at maintaining the kingdom’s position as a regional leader.

This chapter contains an interview with Jean-Christophe Durand, CEO, National Bank of Bahrain.

Articles from this Chapter

Overview

Demonstrating resilience: Sector remains stable despite fluctuations in the regional market
OBG
plus

As Bahrain’s banking sector completes its third full year of operation in a lower oil price environment, profitability and asset growth in the industry has turned flat. However, thanks to a robust regulatory framework, there has been no significant deterioration in asset quality, and there is sufficient liquidity in the system to allow banks to pursue lending opportunities. The sector has also seen some interesting regulatory changes over the past year, aimed at maintaining the kingdom’s…

Interview

Adapting globally: Jean-Christophe Durand, CEO, National Bank of Bahrain (NBB), on adapting to sector changes at the local and international level
OBG
plus

Interview:Jean-Christophe Durand How are the kingdom’s banks adapting to the pace of regulatory changes, such as the Basel guidelines, and new technologies? JEAN-CHRISTOPHE DURAND: There have been a number of changes in the industry, driven both by regulatory guidelines and the development of new technologies. The whole GCC region has embraced these changes. Bahrain plays a leading role and remains at the forefront thanks to its exposure to international markets, and a regulator that encourages…

Analysis

Competing interests: Financial technology seeks to strike a balance between innovation and regulation
OBG
plus

The rapid evolution of the financial technology ( fintech) arena has presented a dilemma to regulators across the world. The industry is emerging as one of the most vibrant segments of the wider financial services sector, and in 2015 collected over $22bn in investment, according to the Central Bank of Bahrain (CBB), a figure that is expected to grow exponentially over the coming years. The disruptive power of new products and services has heightened competition and compelled financial institutions…

Analysis

Merge here: Regulatory bodies continue to encourage consolidation
OBG
plus

With the exception of Saudi Arabia, the banking sector across the GCC is generally fragmented in nature, with a large number of institutions pursuing business within relatively small bankable populations. For decades regulators have extolled the virtues of sector consolidation, in some cases approaching banks discretely to encourage a merger, and in other cases, adjusting regulatory frameworks to make them more amenable. Financial institutions, however, have proved reluctant to combine their…