8th June 2021

NBB and Standard Chartered Bank Execute the First Conventional Interbank Repurchase Transaction Denominated in Bahraini Dinars

Manama, Bahrain: Following the Central Bank of Bahrain’s (CBB) launch of the interbank repo product for the Government of Bahrain’s conventional securities, The National Bank of Bahrain (NBB), in conjunction with Standard Chartered Bank, executed the first conventional interbank repurchase (Repo) transaction denominated in Bahraini Dinars.

 

This comes as a part of the CBB’s ongoing efforts towards the development of the banking sector, promoting liquidity management and building a liquid and reliable secondary market curve for conventional retail banks, which was entrusted to the Bahrain Association of Banks (BAB), to guide and ensure implementation within the banking arena in Bahrain.

 

NBB and Standard Chartered have taken the lead in developing the repo market, and have executed the first deal of this kind ensuring that it meets international standards. This marks an important achievement and a milestone for the Kingdom of Bahrain, as repos are considered an integral factor in developed money and capital markets.

 

The CBB has been a longstanding advocate of the development of the Repo Market, providing the custody and collateral management infrastructure required while facilitating early discussions among Banks. BAB, on the other hand, has been instrumental in guiding discussion and encouraging implementation among its members.

 

Hisham Al Kurdi, Group Chief Executive - Corporate & Institutional Investment Banking at the National Bank of Bahrain, said: “We are pleased to be part of this key initiative that will ultimately work towards advancing money and capital markets in Bahrain. Repurchase transactions enhance bank liquidity management and contribute to the development of the secondary markets in securities denominated in Bahraini Dinars, aligning us with developed international markets and maintaining the Kingdom of Bahrain pioneering capital market position in the region.”

 

Roomi Siddiqui, Executive Director, Head Treasury Markets MENA Sub Region for Standard Chartered, said: “In addition to the development of local markets, the initiation of the Repo market would provide investors in the Government of Bahrain debt securities denominated in Bahraini Dinars with greater access to liquidity and leverage.”

 

The Introduction of Interbank repo as one of the mainstream products will leverage further movement of liquidity within banks and increase activity in interbank transactions. This step will not only provide an additional source of liquidity to the market, but will also enable funding to be cost effective. In addition to helping build a secondary market yield curve, it will also address the long-term funding requirements of the market with a much-reduced credit risk compared to conventional funding.

Latest News

NBB Offers Cash Prizes During Bahrain Sports Day Event as Part of Thara’a Prize Campaign
NBB Offers Cash Prizes During Bahrain Sports Day Eve…

Read More
As the First and Only Bank to Support the Green Factory Seal Programme NBB Signs MoU with the MOIC to Promote Sustainable Industrial Practices
As the First and Only Bank to Support the Green Fact…

Read More
NBB Supports MIT - Harvard Architecture Workshop Led by Bahraini Academics
NBB Supports MIT - Harvard Architecture Workshop Led…

Read More
NBB Launches the Kingdom’s First Mortgage Offering with Integrated Solar Financing
NBB Launches the Kingdom’s First Mortgage Offering w…

Read More
NBB to Participate in the 3rd Housing Finance Exhibition 2024
NBB to Participate in the 3rd Housing Finance Exhibi…

Read More
NBB Signs MoU with Al Janabiya Gate Real Estate to Provide Exclusive Offers for Customers
NBB Signs MoU with Al Janabiya Gate Real Estate to P…

Read More
NBB Attends Crown Prince International Scholarship Programme’s 25th Anniversary Event
NBB Attends Crown Prince International Scholarship P…

Read More
**Set to Have the Largest Prize Draws in the History of the Bank** NBB’s New Thara’a Account Offers Exclusive Prizes
**Set to Have the Largest Prize Draws in the History…

Read More
Maki Mohamed & Sayed Jaffar Shubbar Win NBB’s 2023 Dream Prize of $1,000,000 Each
Maki Mohamed & Sayed Jaffar Shubbar Win NBB’s 20…

Read More
NBB Receives Two Prestigious Awards at Ministry of Labour and Social Development's Distinguished Employees & Outstanding Entities Ceremony 2023
NBB Receives Two Prestigious Awards at Ministry of L…

Read More
NBB Launches New ‘Top-Up Your Personal Finance’ Campaign
NBB Launches New ‘Top-Up Your Personal Finance’ Camp…

Read More
NBB Launches Exclusive Offer ‘Transfer Your Mortgage Finance’
NBB Launches Exclusive Offer ‘Transfer Your Mortgage…

Read More
NBB Partners with ASK Real Estate to Provide Financing for Beaut Budaiya Property Buyers
NBB Partners with ASK Real Estate to Provide Financi…

Read More
NBB Group Holds ‘Innovation Challenge’ Internal Competition for Employees
NBB Group Holds ‘Innovation Challenge’ Internal Comp…

Read More
NBB and Bapco Energies Announce First ESG-Linked Interest Rate Swap in Bahrain
NBB and Bapco Energies Announce First ESG-Linked Int…

Read More
NBB’s Zied Jalali Highlights NBB’s Role in Climate Action during a Panel at COP28
NBB’s Zied Jalali Highlights NBB’s Role in Climate A…

Read More
NBB Delegation Attends COP28 in Dubai
NBB Delegation Attends COP28 in Dubai

Read More
NBB Launches ‘Transfer Your Finance’ campaign with Rewards
NBB Launches ‘Transfer Your Finance’ campaign with R…

Read More
NBB Supports Friendship Society for the Blind’s Nursery Renovation
NBB Supports Friendship Society for the Blind’s Nurs…

Read More
Mohd Hassan Al-Saeed Announced as October’s Winner of NBB’s Al Watani Savings Scheme Prize Draw
Mohd Hassan Al-Saeed Announced as October’s Winner o…

Read More