The Central Bank of Bahrain (CBB) should tighten regulatory oversight of banks and financial institutions issuing credit cards, MPs have said, citing customer complaints over fees, interest charges and what they called arbitrary practices.
The proposal by five legislators led by Strategic Thinking Bloc spokesman MP Khalid Bu Onk urges the CBB to introduce clear controls governing the relationship between credit card issuers and customers to prevent practices that may harm consumers’ financial interests.
Mr Bu Onk claimed that the growing reliance on credit cards as a primary payment method has been accompanied by an increase in grievances from citizens and residents.
“We are receiving repeated complaints about unexplained fees, high interest rates and rigid procedures that place heavy burdens on customers. This directly affects financial stability for many families,” he said.
According to the explanatory memorandum attached to the proposal, the absence of ‘sufficiently clear controls’ in some cases has led to an imbalance in the contractual relationship between financial institutions and customers, resulting in the accumulation of financial obligations.
The MPs stressed that the move is not aimed at restricting banking activity, but at ensuring fairness, transparency and alignment with international best practices in consumer protection.
“The objective is to ensure that customers are treated fairly, that all fees and interest mechanisms are transparent, and that no arbitrary action can be taken without clear regulatory safeguards,” he added.
The proposal outlines three main objectives: strengthening oversight to ensure compliance with regulations, establishing customer protection controls against unjustified fees and procedures, and enhancing overall confidence in the banking system.
MPs emphasised the need for Bahrain to keep pace with global standards in protecting users of financial services, noting that strong consumer safeguards are a key element of a healthy and trusted financial sector.
“A robust regulatory framework benefits both customers and financial institutions by building trust and reducing disputes,” said Mr Bu Onk.
The proposal has been submitted for urgent consideration under Parliament’s procedures.
mohammed@gdnmedia.bh
&uuid=(email))