Saudi Arabia and Bahrain have launched the technical linking process of the credit information exchange project between banking institutions operating in the two countries.
The Bahrain Electronic Network for Financial Transactions (BENEFIT) and the Saudi Credit Bureau (SIMAH) revealed on Sunday that this step comes in implementation of the Gulf Cooperation Council’s Supreme Council decision issued at it 37th session in 2016.
The decision stipulates approving to exchange credit information in accordance with the work plan and the comprehensive framework and the mechanism for facilitating the exchange of credit information among the GCC member states.
The project aims to enhance transparency in financial transactions in the Gulf and provide financial tools that contribute to reducing credit risks associated with any financial transaction for any economic activity, in a way that promotes the growth of these activities.
Saudi Central Bank Governor Fahad al-Mubarak said this step comes in line with objectives of the Kingdom Vision 2030’s Financial Sector Development Program, which targets launching strategic projects that enhance cooperation frameworks among GCC states, offer greater investment opportunities and ensure their stability and economic growth.
Mubarak explained that the financial sector relies on such strategic projects to achieve GCC states’ common goals.
Bahrain’s Central Bank Governor Rasheed al-Maraj, for his part, said the initiative is an implementation of both governments’ visions and directives and the future role in developing and enhancing banking transactions.
The project provides decision-making support processes for commercial relations and partnerships in accordance with an advanced system of information and audited data provided by the authorities concerned with credit information reports, which enhances confidence and transparency and provides broader areas of mutual commercial work.
This step maximizes the role of the credit information industry and is considered a key force to tighten the grip of control and supervision, increase levels of transparency and contribute to supporting the stability of the financial sector of the GCC states.