14 December 2006
The Central Bank of Bahrain (CBB), in cooperation with commercial banks, is launching a BD benchmark interest rate, the Bahraini Dinar Inter-Bank Offered Rate (BHIBOR) representing the average offered rates of 10 banks for lending on the interbank market.
The BHIBOR will be provided for eight tenors, ranging from over-night to one year. The rates will be updated daily, from Sunday to Thursday, at 11am Bahrain time.
Dr Abdul Rahman Saif, CBB executive director, banking operations said: "The move to establish the BIBOR is yet another initiative by the CBB to enhance market transparency and to encourage a more active inter-bank market. This benchmark rate will help to guide the setting of interest rates by the banks.
The CCB is also launching its own page on Reuters which will provide information on CBB official interest rates as well as the market exchange rates of the Bahraini Dinar (BD) against major international currencies.
The official rates include rates on deposits, lending and repos. The CBB official rates will also be updated daily, at 10am Bahrain time.
Dr Saif added: "The CBB official rates have, until now, been available only on the CBB website. However, Reuters will be an additional tool for disseminating information, utilizing a channel widely used by the financial services industry.
"These moves are part of the implementation of an overall CBB plan to enhance its operational framework, to make it more market-oriented and transparent."
To support the implementation of planned changes, the CBB has also recently initiated the establishment of the Bahrain Money Market Forum (BMMF), which is serving as a platform for discussion on market development and structural issues and enhancing transparency in the BD money market.
Meanwhile the CBB has granted a licence to Global Union Energy Ventures, an investment advisory firm specialising in the energy industry.
The firm will provide advisory services to develop innovative conventional structures, both conventional and Islamic, as well as conduct private placements of equity and debt.
Ahmed Al Bassam, Director, Licensing & Policy, at the CBB said: "The Bahrain office will serve as the hub for Global Union's activities in the Middle East. "We are delighted to welcome Global Union to Bahrain's well-diversified international financial centre."
The Central Bank of Bahrain (CBB), in cooperation with commercial banks, is launching a BD benchmark interest rate, the Bahraini Dinar Inter-Bank Offered Rate (BHIBOR) representing the average offered rates of 10 banks for lending on the interbank market.
The BHIBOR will be provided for eight tenors, ranging from over-night to one year. The rates will be updated daily, from Sunday to Thursday, at 11am Bahrain time.
Dr Abdul Rahman Saif, CBB executive director, banking operations said: "The move to establish the BIBOR is yet another initiative by the CBB to enhance market transparency and to encourage a more active inter-bank market. This benchmark rate will help to guide the setting of interest rates by the banks.
The CCB is also launching its own page on Reuters which will provide information on CBB official interest rates as well as the market exchange rates of the Bahraini Dinar (BD) against major international currencies.
The official rates include rates on deposits, lending and repos. The CBB official rates will also be updated daily, at 10am Bahrain time.
Dr Saif added: "The CBB official rates have, until now, been available only on the CBB website. However, Reuters will be an additional tool for disseminating information, utilizing a channel widely used by the financial services industry.
"These moves are part of the implementation of an overall CBB plan to enhance its operational framework, to make it more market-oriented and transparent."
To support the implementation of planned changes, the CBB has also recently initiated the establishment of the Bahrain Money Market Forum (BMMF), which is serving as a platform for discussion on market development and structural issues and enhancing transparency in the BD money market.
Meanwhile the CBB has granted a licence to Global Union Energy Ventures, an investment advisory firm specialising in the energy industry.
The firm will provide advisory services to develop innovative conventional structures, both conventional and Islamic, as well as conduct private placements of equity and debt.
Ahmed Al Bassam, Director, Licensing & Policy, at the CBB said: "The Bahrain office will serve as the hub for Global Union's activities in the Middle East. "We are delighted to welcome Global Union to Bahrain's well-diversified international financial centre."
© Bahrain Tribune 2006
