Bahrain allays fears about financial system

Manama: Bahrain on Monday asserted its financial system remained in good shape amid calls by the business community for the government to be more transparent about its preparedness to deal with the possible fallout of the global credit crisis and a call by a member of parliament to follow the UAE's example by introducing a Bill guaranteeing deposits and savings in the banks.

"The banking and financial control systems in Bahrain are safe and sound. The policy of the Central Bank of Bahrain to monitor closely the local and global situations and its best practices as well as following on any decision to strengthen transparency and control of financial markets are crucial elements of stability," said Finance Minister Shaikh Ahmad Bin Mohammad Al Khalifa.

However, the Bahrain Chamber of Commerce and Industry (BCCI) warned the authorities not to try to hide anything.

"Since Bahrain is considered the region's financial services hub, primarily in the Islamic and offshore banking sectors, great attention has been given by leading international monitoring agencies on the possible impact of such huge proportion on the kingdom's financial institutions and national economy," the BCCI said in a statement sent to the media.