BMA, State Bank of Pakistan sign cooperation agreement

The MoU was signed by HE Khalid Abdulla Al Bassam, Deputy Governor of the BMA, and HE Tawfiq Husain, Deputy Governor of the SBP, on the sidelines of the World Islamic Banking Conference, being held at the Gulf International Convention and Exhibition Centre at the Gulf Hotel on 7th & 8th December 2003.

The agreement provides for a more comprehensive exchange between the two institutions on a host of issues, including supervision, technical expertise and training assistance.

"We are delighted to sign this agreement to continue developing the good working relationship between the BMA and the SBP," said Mr. Al Bassam, following the signing ceremony, held at the conference venue.

The increasingly complex operations of financial institutions and the multiplicity of jurisdictions in which these institutions operate are necessitating enhanced cooperation between regulatory authorities, both at the bilateral and multilateral levels, he said.

"The agreement we have signed today provides continuing evidence of BMA's commitment to establishing and maintaining effective exchange relationships with other regulatory authorities, such as SBP," said Mr. Al Bassam.

He noted that five Pakistani banks currently operate in Bahrain, while one Bahrain-based bank has operations in Pakistan.

"Bahrain welcomes foreign institutions which can add value to our well-diversified financial services industry," he said.

Mr. Husain said the two sides had identified certain specific areas for cooperation, primarily Islamic banking and finance and leasing.

"Bahrain is a global financial center of excellence and we are particularly keen to learn from BMA's experience in developing Islamic finance," he said.

Also present at the signing ceremony were HE Sabihuddin Bukhari, Ambassador of Pakistan to Bahrain; Dr Khalid Ateeq, Executive Director, Banking Supervision, at the BMA; Dr Abdul Rahman Saif, Executive Director, Corporate Services, at the BMA and Mr. Mansoor Rahman, Executive Director, Banking Operations, at the SBP.