CBB joining AFAQ brings a big boost to Bahrain banks: BAB

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

The accession of the Central Bank of Bahrain to the Arabian Gulf System for Financial Automated Quick Payment Transfer (AFAQ) to accelerate cross-border transfers across the Gulf Cooperation Council will bring a tremendous boost to Bahrain’s banking sector, said Bahrain Association of Banks.

AFAQ, BAB said, will bring comprehensive positive effects on the banking sector of Bahrain, trade and investment exchange and all financial transactions of institutions and individuals in both Bahrain and Saudi Arabia.

The first financial transactions through the GCC Real Time Gross Settlement system as part of AFAQ was between CBB and the Saudi Central Bank on the 10th of December 2020.

The central banks of the remaining states will come on board according to an agreed schedule. The Gulf Payment Company in Riyadh, established by the Supreme Council of GCC to build and operate the GCC RTGS, operates AFAQ.

GPC is owned and managed by the National Central Banks of the six GCC countries - the United Arab Emirates, Bahrain, Saudi Arabia, Sultanate of Oman, Qatar, and Kuwait.

Commenting, Adnan Ahmed Yousif, the Chairman of the Bahrain Association of Banks, said: “AFAQ will contribute to the financial integration, stability, and economic growth in the region, as it’s also a crucial step to provide banks and customers an additional channel of transferring funds through a faster and more secure mean at a lower transaction cost.”

For his part, the CEO of the Association, Dr Waheed Al Qassim, said the move would help Bahraini banks and financial institutions increase the speed and rate of their financial transactions with their counterparts in Saudi Arabia.

“The central banks in the rest of the GCC countries will join accordingly to enhance the desired benefits of AFAQ,” Dr Al Qassim said.