Diversification of Islamic Financial Insturments
169
has been attributed in part to Bahrain’s credible and robust regulatory framework, which is
aligned with international best standards.137
The Central Bank of Bahrain (CBB) regulates and supervises the entire financial system in
Bahrain. CBB’s regulations are presented in the CBB Rulebook, which contains licensing
requirements, capital adequacy requirements, risk management, business conduct, reporting
and disclosure requirements and enforcement actions in seven volumes, each covering a
different segment in the financial system.138
The CBB also regulates licensed exchanges and clearing houses and acts as the listing authority
for companies and financial instruments in Bahrain.139 As far as Islamic banking and finance is
concerned, the CBB has a directorate dedicated to Islamic banking.
Financial Status of Islamic Banks, Islamic Capital Market and Takaful
Industry in Bahrain
There are 64 Islamic Financial Intuitions in Bahrain140, 31 of which are listed in the top 350
Islamic Financial Institutions in the Banker 2016 Report (see the Figure on Bahrain’s top IFIs
below)141. Islamic finance assets continue to grow at a faster rate than conventional bank
assets.142
137 eGovernment, Banking and finance, accessed 6 April 2017, se
138 Central Bank of Bahrain, Financial sector overview, accessed 27 March 2017,
139 Central Bank of Bahrain, Financial sector overview, accessed 27 March 2017,
140 ICD-Thomson Reuters, “Islamic Finance Development Report 2016”, p. 30
141 The Banker, “Top Islamic Financial Institutions”, 2016
142 Central Bank of Bahrain, The Review, accessed 13 March 2017, see