InFocus
Open Banking Module Summary
Open Banking Module Summary
Introduction
During November 2018, the Central Bank of Bahrain (CBB) announced the launch of draft rules (25 pages) on open banking. The document is directed toward open banking operators that provide either of the following services:
a)Providers of account information
b)Providers of payment initiation
The common factor between both of these regulated services consist of gaining access to customer accounts from electronic wallets, conventional Islamic and retail banks through ‘application program interfaces’ (APIs).
Timeline of open banking developments in Bahrain
April 2018 - Tarabut Gateway joins the regulatory sandbox as first open banking applicant
11 November 2018 - CBB issues open banking draft rules
25 November 2018 - Deadline for feedback on open banking draft rules
11 December 2018 - Tarabut Gateway graduates from regulatory sandbox
Definitions
Application Program Interfaces (API): API consists of a software intermediary that allows two applications to interact.
Account Information Service Providers (AISPs): A CBB-licensed entity that provides online account information services.
Payment Initiation Service Providers (PISPs): A CBB-licensed entity that provides online payment services.