CBB collaborates with FCA to develop Global Financial Innovation Network

Manama : The Central Bank of Bahrain (CBB) yesterday announced the creation of a Global Financial Innovation Network (GFIN), building on the Financial Conduct Authority (FCA)’s proposal earlier this year to create a ‘global sandbox’. The launch was held in collaboration with FCA and 11 financial regulators and related organisations.

The network will seek to provide a more efficient way for firms to interact with regulators, helping them navigate between countries as they look to scale new ideas. The move, according to CBB, will also create a new framework for co-operation between financial services regulators on innovation-related topics, sharing different experiences and approaches. The collaborative effort, involving regulators from around the world, has also launched a consultation on the role the GFIN should play in delivering its objectives, including the tools it will use. 

The three main functions of the GFIN are act as a network of regulators to collaborate and share the experience of innovation in respective markets, including emerging technologies and business models; provide a forum for joint policy work and discussions; and provide firms with an environment in which to trial cross-border solutions. As part of the consultation, the group is seeking views on the mission statement for the GFIN, its proposed functions, and where it should prioritise activity. The group is also keen to hear from other interested regulators or related organisations who wish to get involved.

Speaking on the occasion, Rasheed Mohammed Al Maraj, the Governor of the CBB, praised the successful experience of the CBB with its own Regulatory Sandbox since its launch in mid-2017, which attracted many companies that are involved in testing innovative financial solutions.  “Through its participation in GFIN, the CBB will seek to enhance cooperation with leading global financial centres to drive economic growth.”