Bahrain’s Central Bank has launched a Financial Market Infrastructures or FMIs and Payment Oversight Framework.

The Framework outlines the key roles, objectives, expectations, powers, standards, approach and tools of the oversight function.

It has been launched to respond to developments that have affected the financial sector.

It has also been launched to strengthen the legal basis of protecting settlement finality and netting arrangements.

In addition, it has been launched to identify FMIs that should be overseen by the Central Bank.

It was developed by the Bank’s FMIs and Payment Oversight division. The oversight function is defined by the Principles for Financial Market Infrastructures by the Committee on Payment and Settlement Systems. Its main aim is to ensure financial stability by mitigating and lowering systemic risk and presenting core principles for effective banking supervision.

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