Central Bank of Bahrain launches FMIs, Payment Oversight Framework

TDT | Manama                                                     

The Daily Tribune – www.newsofbahrain.com

The Central Bank of Bahrain (CBB) launched the Financial Market Infrastructures (FMIs) and Payment Oversight Framework.

The framework was developed by the CBB’s FMIs and Payment Oversight division, whereby the Oversight function is defined by the Principles for Financial Market Infrastructures (PFMI) by the Committee on Payment and Settlement Systems (CPSS).

CPSS was established in 1990 by the G10 Governors, currently named the Committee on Payments and Market Infrastructures (CPMI) under the Bank for International Settlements (BIS) and its main aim is to ensure financial stability by mitigating and lowering systemic risk and presenting core principles for effective banking supervision.

The purpose of the framework is to outline the key roles, objectives, expectations, powers, standards, approach and tools of the Oversight function in response to the transformational developments that have affected the financial sector to strengthen the legal basis of protecting settlement finality and netting arrangements, and identifying FMIs that should be subject to oversight by CBB.

Hessa Al Sada, Executive Director of Banking Operations at CBB, said that the FMIs and Payment Oversight framework is a testament to CBB’s efforts in maintaining international standards and ensuring safe and effective performance of payment systems in the Kingdom, which enhances trust in the local financial system. Through these guidelines, CBB aims to foster innovations in payment systems to keep pace with the momentum in the financial ecosystem.

The FMIs and Payment Oversight Framework is available online on CBB’s website: https://www.cbb.gov.bh/financial-stability/.