MANAMA: The regulatory environment in Bahrain is an excellent example to other countries in the GCC and the Middle East, according to a visiting expert.
Ernst & Young Northern Europe, the Middle East, India and Africa Regulatory and Public Policy managing partner Jan Babiak was speaking on the sidelines of the summit.
"Regulation is of growing importance in a global economy that is more interdependent every day," she said.
"All central banks are more aware than ever of the threats posed to their security - and the economies which they are there to protect - by a wide range of threats, from money-laundering to non-compliance to information security."
The Central Bank of Bahrain is recognised internationally for its support of strong corporate governance frameworks in the financial sector, according to Ms Babiak.
"It must be stressed that we are seeing many advances by central banks across the Middle East.
"As international attention is increasingly focused on this part of the world, on the back of significant oil revenue liquidity, investors want to be sure that they are protected by the same type of independent legal and compliance frameworks that they are used to elsewhere," she said.
There is a strong link between good corporate governance and strong economic growth, Ms Babiak said.
"Corporate governance is important because it is a fundamental part of the institutional infrastructure that underlies economic performance.
"Good corporate governance stimulates performance, generates higher returns on investment and encourages higher productivity as well as encouraging innovation and long-term investments - which are important sources of competitive advantage."
Ms Babiak, who moderated the Corporate Governance session at the Regulators' summit, is responsible for leading the regulatory and public policy interest and corporate responsibility and climate change services of Ernst & Young in more than 40 countries.
This includes board level co-ordination with government offices, regulatory bodies, national professional bodies and other stakeholders including clients, investors and academics.
