The Electronic Exchange of Credit Information programme between Saudi Arabia and Bahrain has begun, according to the Saudi Credit Bureau (SIMAH) and BENEFIT.
The declaration follows a resolution made by the Supreme Council of the Gulf Cooperation Council (GCC) during its 37th session in 2016.
In accordance with a thorough structure and strategy describing the method to support this exchange across the GCC members, the council decision approved the sharing of credit information between the GCC states.
The project aims to enhance transparency for financial transactions at the GCC level and provide financial tools to reduce credit risks associated with financial transactions of all economic activities.
Central Bank of Bahrain (CBB) Governor Rasheed bin Mohammed Al Maraj stressed the importance of this initiative, which is in line with the collective vision and royal directives to develop and enhance commercial transactions and economic performance in both countries.
The initiative provides decision-making support processes for commercial relations and partnerships integrated with an advanced information system and audited data provided by the authorities handling credit information reports, which boosts confidence and transparency to unlock new opportunities for mutual business.
Saudi Central Bank (SAMA) Governor Dr. Fahd bin Abdullah Al Mubarak stressed the purpose of this initiative to achieve the objectives of the financial sector agenda in line with Saudi Arabia’s Vision 2030.
BENEFIT Chief Executive Al Janahi said that the Bahrain Credit Reference Bureaus working to complete the link with the rest of the GCC nations in collaboration with the central banks and relevant authorities and institutions in the GCC countries.
The initiative was implemented to strengthen the role of the credit information industry, and serve as a crucial pillar for control and supervision, boosting transparency, and contributing to the stability of the GCC nations’ financial sectors.