Marcopolis presents the Bahrain Report focused on the investments, doing business, economy and other topics featuring interviews with key executives and government officials. The sectors under review are industry, telecom, banking sector, ICT, investments and more.
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Abdul Karim Ahmed Bucheery, Chief Executive of BBK Bahrain and Chairman of the Bahrain Association of Banks, talks about the banking regulations in Bahrain.
He discusses in detail the FATCA, the Basel III accords, and the new regulations by the Central Bank of Bahrain that is to identify and regulate the systematically important banking institutions. The Governor of the Central Bank of Bahrain announced that the CBB will "identify a number of local banks which will be categorized as Domestic Systematically Important Banks (DISB) for the banking system."
Commenting on the Basel III accords Bucheery sees potential pitfalls: "Another important thing that banks will go through is the introduction of Basel III and the minimum capital requirements. There will be much tougher requirements with Basel III and you will need to allocate a good part of your capital for various risks," he adds.
Lastly, regarding the FATCA, Bucheery states: "The final legislation for FATCA has come out and will be implemented beginning next year. There are many policies and system enhancements that we need to do in terms of IT and processes to ensure full compliance with FATCA requirements. The Central Bank has directed all players in the Bahrain market to be prepared and will be supportive of efforts to prepare for full compliance with FATCA, although the Central Bank of Bahrain has not yet decided which mode or route they will go through."