Bahrain has many financial sectors which are developed and diversified including Islamic banks , commercial banks , insurance companies , financing companies , investment advisors , insurance brokers , security brokers and mutual fund that traded in retail or wholesale market .
The sectors are regulated and supervised by central banks of Bahrain (CBB) which was known as Bahrain monetary agency. Requirements are contained in the Central Bank of Bahrain Rulebook that is divided into six volumes and each volume describes a different type of financial system.
Central bank of Bahrain Rulebook consists of rules to both licensing and ongoing policies and oversees of licensee , licensing requirement , capital adequacy , risk management , disclosure requirement and enforcement action.
Banking
Bahrain’s banking system consists of both commercial banks and Islamic banks , both of these are the largest components of the financial system in Bahrain . Commercial and Islamic banks assets estimate of 85% of total financial assets . Commercial banks consists of 23 banks , 69 wholesale banks , 2 financial banks with 36 offices over the Bahrain , 6 Islamic banks and 18 wholesale banks.
The banking sector did an important role in the emergence of Bahrain playing a guiding financial market. In December 2006, the assets of the banking sector made it over 180 billion dollars, 12 times more than the Gross Domestic Product of Bahrain.
The open market economy supported by the industry growth , macroeconomics and fiscal policies , regulatory framework with international standard and strong and qualified local workforce all of these factor combined lead to Bahrain regional banking hub that is successfully attracting foreign banking to work in Bahrain.
Because of petrol and petrol product such as oil , recent growth in the financing sector has been backed and the liquidity has increased . Because of that bank play a major role in reinvesting surplus of oil and financing opportunities on other type of economy.
Insurance
Bahrain has many commercial insurance companies and Islamic insurance companies . Bahrain have 15 domestic commercial insurance companies , 11 foreign insurance companies . There are also 9 Islamic insurance companies.
Insurance industry has grow in the last recent years . increase in financial service lead to demand for insurance service . many of insurance companies choose Bahrain as their regional base because of development in the international regional operation.
Central bank of Bahrain establish rules for insurance companies in Bahrain .
Capital Markets
Bahrain Bourse (BHB) was established in according to law NO.
For companies like SEL where the risk is associated with the life of employees, it is necessary for the employers to pay insurance premium, as personal coverage of employees is not sufficient in case of any mishappening. If we ignore these payments, it would be unethical, as it is not certain that no accident will happen in future. As SEL’s new contract requires complex effects that may involve higher risk of accidents. If SEL failed to pay future payments and if any accident occurs, SEL would end up with paying higher premium and delay in projects completion. One more concern is that if new clients find out that SEL has no insurance coverage in place, it could have negative impact on SEL’s
Insurance is as ancient as Babylon. The first policy dates back to 2100 B.C.; specifically, it is the Code of Hammurabi. A loan from a trader made certain his valuable cargo traveled safe from the harm of thieves or storms (Marples). The term changed drastically through the ages, and insurance is now a mess of premiums, tiers, and co-payments. It may most commonly be known as a negative number on a check stub that ensures health and safety. There exists not one company that covers everything on just one plan, but a step forward may change that.
Business Insurance News, Analysis & Articles. Web. The Web. The Web.
The early decades of the nineteenth century saw the establishment of banks in the Caribbean largely as a convenience for the local governments. Throughout much of the nineteenth century, most Caribbean banks operated as an oligopoly with limited government influence – this directly translated into higher profits. However, over time, the banking environment could best be described as complex and dynamic. Competition increased, resulting into greater need for improved customer service, product innovation and cost reduction strategies. In order to achieve this, the banking sector was undergoing major structural reforms characterized by mergers and acquisitions. On July 23, 2001 Barclays and CIBC announced that they were in advanced discussions which were intended to lead to the combination of their retail, corporate and offshore banking operations in the Caribbean.
Kumar, B. assumed in an article that Dubai promotes itself as the commercial and economic focal point of the Gulf region which is obvious from the plans undertaken to develop open trade regions and manufacturing parks. Dubai is seen as a moderately liberal and international society with 80 % emigrant population and can count on as being one of the safest cities in the globe. The Government has a key role in starting and supporting tourism and with respect to the tourism policy of the government; tourism was positioned at the centre of the diversification program beside construction.
...ence of Capital Measurement and Capital Standards’, Basle Committee on Banking Supervision, vol.1, no.1, p1-28.
The industry is composed by a continuum of banks which produce a homogenous product — banking service. Domestic as well as foreign competition is violent. Not to forget the fact that ICBC has not been the first bank to embrace internet banking. So, it is all the more reason which places the bank in the most precarious position to continuously shield it self from the volleying competition.
The bank failure in Jamaica illustrates how negative mindsets and behaviors can devastate the financial system and disrupt economic growth. The primary role of any bank is to safeguard its customer’s money, offer interest rate on deposits, lend money to creditworthy individuals, and make sound investment decisions to maximize shareholder value. Because of rapid economic growth between the late 1980s and early 1990s in Jamaica, the Central National Bank (CNB) and Worker’s Savings and Loans Bank (WSLB) loosened their monetary policies, provided preferential interest rates and extended credit beyond what was reasonable to members of its own board of directors, managing directors, and officers of the bank. These actions posed significant risks to the bank and its future.
Insurance Commission of The Bahamas. 2013. Number of Licensees by Type. Available at: [Accessed Feb 16th, 2014]
After the crisis UAE’s economy suffered from 2008-2009 the economy has diversified itself and does not depend solely on oil anymore but also on other sectors such as tourism. The inflation rate of Dubai is 0.33% which is also significantly low (Dubai Statistics Centre,2016).The small medium enterprise does not want to take a risk where there are fluctuations in price level thereby effecting the buying power of people and also the demand and supply of the Al-Simpkin’s product. Furthermore,the government encourages foreign investment and besides the agent there are free zones such Jabel Ali which is the largest
First, according to Section 2 IBA 1983, Islamic Banking Business is business whose aims and elements do not involve any element which is not approved by the religion of Islam. Based on the definition stated, it is clear that the Islamic Banking practices must according to or complients with the Shari’ah obliged in the Al-Quran and As-Sunnah. In conjuction with the Shari’ah appliances, the Islamic banking business must not include or prohibited involvement of illegal activities. Unlike Islamic Banking, Conventional Banking practises its system based on man-made laws and not included any religious guidelines to support their systems.
The study is primarily designed to find out the continuous issue of the banking system in
Never have I ever climbed a mountain peak. As a child, I imagined myself conducting expeditions in deep-frozen pathways, leading amateur explorers to the top of the world, and instructing rookies in surviving harsh blizzards. Even though slightly altered, my childhood dream has been achieved. I led a team of fellow classmates, in my Strategic Management course, to the success summit of a financial competition. Over the course of a semester, I and my teammates were supposed to create and manage a company of the IT industry, in a computer-simulated environment, along with other four rival teams. I dealt with strategy and financial matters of our virtual enterprise, while my colleagues were working on marketing and manufacturing. During the four months of the exercise, I have experienced finance from various aspects: capital budgeting, through selecting favorable investment for upcoming quarters; debt management, by assessing the necessary amount and efficiency of loans; profitability analysis and dividend policy, which had been used to compile the company’s general performance index. Working in a multinational team, which included an American, a Norwegian and a Moldovan, strengthen my negotiations skills, as well as flexibility and cooperation. But above all, this experience intensified my passion for finance. Of course, a pleasant bonus was the fact that, in the end, our company’s financial performance was six times the performance of second-best team.
This is followed in section 5 by an analysis of the recent changes in the banking industry. With the development of the financial system, declining entry barriers and the deregulation of the banking industry make banks no longer the monopoly suppliers of banking services and reduce their comparative advantages which they usually hold in the past. Whether the reasons give rise to the existence of banks are still powerful will be examined here, while section 6 offers a way of considering whether banks are declining by looking at the value added by the banks. When the value added by banks is examined, banks are not a financial intermediation, which not only conduct the traditional services but also provide more diversified
The bank has another competency in the banking industry i.e. it has broad branch network throughout the country also more than one branch in high productive cities. The customers are provided services at their nearest possible place to confirm customer satisfied.