Prominent role for banks in sustainable development and economic growth
The Bahrain Association of Banks (BAB), in cooperation with the Foreign and Finance Ministries and the Central Bank of Bahrain, organized a special celebration on the occasion of the “International Day of Banks”, during which several leaders of the banking sector in Bahrain and representatives of international organizations, the World Bank, and diplomats, stressed the significance of this occasion in enriching the debate regarding the role played by banks In Bahrain and the world in the field of sustainable development and support for economic growth and global social stability.
His Excellency Rasheed Al Maraj, Governor of the Central Bank of Bahrain, stated that the approval of the UN General Assembly on the proposal presented by (BAB) to designate an international day for banks reflects the prestigious reputation that the Bahraini banking sector enjoys regionally and internationally, especially since this occasion coincides with the Kingdom of Bahrain celebration of 100 years of banking.
Al Maraj added during the remote ceremony that this event is essential to highlight the role of banks in Bahrain, the region, and the world in support of the UN’s sustainable development agenda for the year 2030, stressing the Central Bank of Bahrain’s keenness to promote the contribution of the Bahraini banking sector in various fields of sustainable development including developing human cadres through qualification, training, supporting digital transformation and expanding applications for open banking and financial technology “FinTech”.
“We praise the prominent role of Bahraini banks in supporting the national efforts to confront the repercussions of the COVID-19 pandemic on the national economy and support economic growth, and the Central Bank of Bahrain looks forward to more banks’ contributions in this field.” He concluded.
Dr. Nasser bin Mohammed Al Balooshi, Ambassador of the Kingdom of Bahrain to Italy, said that the UN’s resolution to approve the proposal of the Bahrain Association of Banks to designate an International Day of Banks represents a new gain for Bahrain on the international scene and highlights its role as a pioneer in the field of commitment to the global trend towards achieving goals of sustainable development.
“UN’s resolution to designate “International Day of Banks” is a big step in the right direction to highlight the role that banks play in sustainable development, and to encourage international, regional and local organizations and entities to strengthen work with the banking sector to achieve this goal, especially since banks have provided nearly $ 400 billion over three years to finance the sustainable development goals. The UN also stated that financing for the green economy doubled during the period from 2007 to 2016, reaching about $ 1.7 trillion, most of which came through banks.” Dr. Al Balooshi said.
Mr. Adnan Ahmed Yousif Chairman of the Board of Directors of Bahrain Association of Banks (BAB), expressed his appreciation for the efforts of various partners of the association in organizing the initiative to celebrate the “International Day of Banks”, foremost among them the Ministries of Foreign Affairs and Finance, the Central Bank of Bahrain and UNDP in Bahrain, stressing the Association’s keenness to make Bahraini banks a role model in the commitment to achieve the sustainable development goals.
In his speech during the ceremony, Mr. Adnan highlighted a number of outstanding contributions to the banking sector in Bahrain and said: “This sector contributes to 17% of the GDP, which puts it in second place directly after oil, and Bahraini financial and banking institutions have about 14 thousand employees with qualitative jobs, most of them are Bahrainis. We must also affirm the keenness of banks to support renewable energy projects, adopt the concept of green loans, and accelerate the trend towards open banking.”
He pointed out that the national responsibility of Bahraini banks was clearly evident during the COVID-19 pandemic through the unprecedented quality services provided to the state, community, employees, and customers, as the total of their donations to the (Feena Khair) campaign amounted to more than 10 million Bahraini dinars, and the instructions of the Central Bank of Bahrain were also applied in the field of deferring loans, activating more digital payment channels, and more.
The head of The International Organization for Migration’s mission in the Kingdom of Bahrain, Mr. Mohamed El Zarkani said that everyone acknowledges that the financial and banking institutions in the Kingdom of Bahrain operate in accordance with the highest international standards related to transparency, integrity, and AML, amidst a flexible and strict legislative and supervisory environment, and this ensures the stability and durability of the Bahraini financial and banking sector.
“The role of banks expanded around the world in what’s called “Social Economy”, which is concerned directly with reducing poverty rates, reducing hunger, and promoting human rights and equality, or achieving this through UN programs, especially in developing countries.” Mr. El Zarkani added.
Mr. Ferid Belhaj, The World Bank Group Vice President for the Middle East and North Africa, emphasized the significance of the keenness of more countries to organize celebrations for the “International Day of Banks”, especially the countries of the region, aiming to enrich the discussion regionally and globally on how to promote the role of banks in national development.
“Marrakesh will host in October 2022 the annual meetings of the World Bank Group and the International Monetary Fund, and the outcomes of the celebration of the “International Day of Banks” could represent a fertile ground for discussion during those meetings attended by a group of central bank governors, ministers of finance and development, and executive officials from the private sector, representatives of civil society, the media, and academics, enriching the discussion of issues of global concern, including global economic prospects, global financial stability, poverty eradication, inclusive economic growth, and job creation, climate change, and other topical issues.” Mr. Belhaj concluded.
