MANAMA: The Bahrain Economic Development Board (EDB) and Bahrain Institute of Banking and Finance held a session “What do global financial sector reforms mean for the Bahraini economy” at the International Institute for Strategic Studies.
The panel discussion brought together high-level speakers from the financial sector, who were able to assess the wave of regulatory reforms adopted internationally in response to the global economic crisis, and the impact of these changes on financial services in the region as well as the broader implications for the Bahraini economy.
Panelists included EDB chief economist Dr Jarmo Kotilaine, Central Bank of Bahrain adviser banking supervision Richard Ellis, Standard Chartered Bank Bahrain chief executive Hassan Jarrar and Professor Sudhakar Raju, Miller Chair of Finance, Hellzberg School of Management and Harvard University, US.
Dr Kotilaine said: “The increase in global regulatory pressures is coming at a time when regional investment and economic development needs are at an historic peak. This creates the need for new solutions and mechanisms for pooling capital. Innovation by regional financial institutions is becoming more important than ever.
“Although the amount of new regulations is huge, they create opportunities for financial institutions which can comply and help their customers comply. Opportunities are there and financial institutions will enhance their earnings in the longer term if they grasp these opportunities,” Mr Ellis said.
“Ever since the 2008 global financial crisis, the banking industry worldwide has seen nothing short of an avalanche of new regulations. Such regulations, though mostly originated in the US and Europe, have, and will continue to have direct implications to the rest of the world, including Bahrain and the region at large. As a result, the banking industry has been undergoing a significant transformation the likes of which has not been seen since Dodd-Frank!,” Mr Jarrar said.
Prof Raju highlighted the importance of understanding the manner in which international market forces and financial regulations impact the kingdom, as the Bahraini economy becomes more diversified and globally focused.