Ravi Menon, managing director, Monetary Authority of Singapore

The banking regulatory authorities in Singapore and Bahrain have signed an Memorandum of Understanding (MoU) aimed at supporting fintech innovation between the two countries. This includes sharing information and adopting a common regulatory framework for fintech companies.

The Central Bank of Bahrain (CBB) and Monetary Authority of Singapore (MAS) will share information on emerging fintech trends and developments to facilitate co-operation on innovation projects as per the agreement.

Usually, fintech companies hit regulatory roadblocks in their efforts to expand to newer geographies. The apex banks in Singapore and Bahrain have decided to adopt a common framework to help fintech companies overcome this obstacle.

“This MoU represents our ongoing cooperation with the MAS and marks an important milestone in the mutual efforts undertaken by both authorities in enhancing our fintech ecosystems,” said Rasheed Al Maraj, governor, CBB.

“In recent years, fintech has created new linkages between the Middle Eastern and South East Asian regions. With this MoU, we look forward to strengthening these linkages and expanding opportunities for fintech firms in Bahrain and Singapore,” said Ravi Menon, managing director, MAS.

The MoU was signed on the sidelines of the Singapore Fintech Festival.

Bahrain is competing with UAE to become the largest fintech hub in the Middle Eastern region. 2018 saw a number of initiatives from the government of Bahrain and its regulatory authorities to help achieve this goal. Bahrain will also be hosting the World Islamic Banking Conference later this month, which covers fintech trends and lenders’ adaptability of the same.

by Parnika Sokhi