“In order for capital market to remain effective and efficient, it should continue to build and enhance liquidity, depth and diversification in terms of investment instruments, listings and capital flow at the regional and international levels,” Rasheed M. Al-Maraj, Governor, Central Bank of Bahrain (CBB) told participants of the two day AFE Equities Summit 2015 being held at the Ritz Carlton Hotel and Spa Bahrain.
“The capital market plays an important role as a major driver of economic growth and an intermediary for the savings of the public investors,” Al Maraj said, adding that the market operators must continue to pursue opportunities to enhance the position and competitiveness of the capital market not just domestically but also globally.
“This entails attracting good flow of foreign capital and issuers. The reputation, quality and credibility of the market are paramount and the regulators will continue to carry out their roles in maintaining market integrity, ensuring fair and sound regulation and protecting the interest of the public investors,” he said.
“In order to establish effective regional and international cooperation, capital market regulators should step up to the challenge and meet global standards in particular the IOSCO’s Principles of Securities Regulation. These initiatives will further lend breadth and depth to the capital markets and will lead to creating more opportunities for fund raising and widening the investors’ base in the region,” Al Maraj said.
Domestically, he added, the Central Bank of Bahrain (CBB) remains committed to developing the capital market and provides the Bahrain Bourse with the support it needs to increase its scale and contribute to the national economic growth.
“The CBB has encouraged the Bahrain Bourse to adopt initiatives that will help to enhance market liquidity and depth, as well as provide a diversified, fair and transparent environment for the public investors. In this regard, Bahrain Bourse works closely with the Central Bank of Bahrain in introducing new products and services and coordinates with all industry stakeholders and segments in developing and enhancing market infrastructures.”
Currently, he said, the Central Bank of Bahrain is in the process of upgrading the exiting clearing and settlement, central depository and central registry frameworks as well as market intermediary supervisory functions. In respect of supervision on listed companies and other securities, the Central Bank of Bahrain continues to enhance its regulatory development programmes by embarking on initiatives such as the establishment of a disclosure and corporate governance-based monitoring framework.
In general, he said, the overall stability, strength and credibility of our capital markets provide many opportunities for growth and the CBB continues to work with the market participants to safeguard the interests of the domestic capital market and ensure its development. The Central Bank of Bahrain is also committed to working with the regional counterparts in order to further enhance the capital markets in the region.