Central Bank of Bahrain (CBB) Governor Khalid Humaidan has called for financial regulators to significantly invest in digital tools to ensure the safety and stability of financial services, even as the sector undergoes rapid transformation.
He also stressed the imperative for commercial banks to boost their investment in fintech, noting that new technologies and players are fundamentally reshaping the financial landscape.
The CBB Governor made these remarks during his participation in a high-level panel discussion at the Singapore FinTech Festival 2025, titled ‘Policymakers’ Dialogue: Building Trust, Stability and Innovation in the Next Era of Money.’
During the dialogue, Mr Humaidan emphasised that regulators must adopt supervisory technology (SupTech) to keep pace with the swift growth of digital products and market innovation.
He explained that embracing these tools is crucial for effectively reducing systemic risk and allowing regulators to better balance their prudential mandate with the need for innovation.
Addressing the role of commercial banks in the evolving world of digital assets, the governor noted the increasingly competitive environment. He pointed out that banks, non-banks, and fintech firms are all investing in products that directly compete with traditional commercial banking services.
Mr Humaidan stressed that the CBB will remain vigilant as a regulator, ensuring consistent regulatory treatment for all market players.
He concluded the session by reaffirming that managing systemic risk remains the CBB’s utmost regulatory priority. This focus is due to the financial sector being Bahrain’s largest contributor to the economy, a vital source of foreign direct investment (FDI), and a key driver of job creation across the kingdom.
Mr Humaidan was joined on the panel by Bank of Spain Governor José Luis Escrivá and Croatian National Bank Governor Boris Vujčić.
&uuid=(email))