Al-Khalifa to head the BMA

19 November 1999
FINANCE

Sheikh Abdulla Bin Khalifa al-Khalifa was on 7 November appointed governor of the Bahrain Monetary Agency (BMA - central bank). He had been the acting governor since the previous governor, Abdullah Saif, was appointed Finance & National Economy Minister in a cabinet reshuffle on 31 May (MEED 11:6:99). Prior to that, Sheikh Abdulla served as the deputy governor at the BMA.

'We are very delighted that a governor has been appointed, and that Sheikh Abdulla is that governor,' says a senior Bahraini banker. 'He is no stranger to the BMA, what it does and how it operates.'

In the five months since the position became vacant, there has been much speculation over the appointment, and a number of bankers have been linked with the post, including Murad Ali Murad of Bank of Bahrain & Kuwait, Adnan Yousif of ABC Islamic Bank, and Hassan Ali Juma of National Bank of Bahrain (MEED 22:10:99).

However, bankers have welcomed Sheikh Abdulla's appointment. 'It takes more than just banking experience to be a regulator as the governor has to work very closely with the Finance Ministry,' says a local banker. 'Sheikh Abdulla comes from the team built by the previous governor and current finance minister, Saif. They will maintain a good and close working relationship.'

The governorship of the BMA is considered one of the most important regulatory posts in the Gulf as its wide-ranging remit covers the supervision of some of the largest offshore banks, such as Arab Banking Corporation and Gulf International Bank, and an extensive domestic financial sector. Bahrain has also become the centre for the Islamic banking community, and the BMA has taken the lead in devising a regulatory framework for Islamic banks. The BMA has developed a well-earned reputation as an effective regulator, not least because Bahrain has been untainted by the sort of scandals that have affected other regional financial centres.

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