International Islamic Financial Market (IIFM)
The International Islamic Financial Market (IIFM) is an international infrastructure institution, founded with the collective efforts of the central banks and monetary agencies of Bahrain, Brunei, Indonesia, Malaysia, Sudan and the Islamic Development Bank based in Saudi Arabia. It was formed in accordance with agreement of establishment and commenced its operation in 2002 as a non-profit institution head quartered in the Kingdom of Bahrain.

IIFM deliverables and benefits to its members and the Islamic Financial Services Industry (IFSI)

1. Due to its regulatory bodies heritage, IIFM is the link between Islamic Financial Institutions (IFI’s) and regulatory bodies on Islamic Capital and Money Market segment of the industry.

2. Active participation of Islamic and conventional institutions (with interest in Islamic Finance), industry professionals, exchange of knowledge and expertise on a global basis through IIFM’s Working Groups structure.

3. Internationally accepted contracts consistent with Shariah principles and international laws. IIFM’s main aim is to unify the industry.

4. Documentation cost reduction for all IFI’s and improved transactional security.

5. Uniformity and integration approach on issues faced by Islamic and conventional counter parties through collaboration with international development institutions/associations and convergence in line with conventional international practice.

6. Members will have benefit of IIFM’s recommendations, guidelines and best practices on Primary and Secondary market liquidity and related issues.

7. To provide market efficiency by information dissemination and training through specialized forums on the mandated segment of the IFSI.

Central Bank of Bahrain
The Bahrain Monetary Agency was established in 1973 as the central bank and the bank regulator for Bahrain. Its mandate was to implement monetary policy, supervise and regulate the banking sector, and act as the government’s fiscal agent. It also has responsibility for encouraging the growth of Bahrain as a major international financial centre and for managing the foreign currency cash reserves of the Kingdom.

BMA has maintained a fixed exchange rate against the United States dollar since 1980 providing a high degree of economic and price stability.

In 2002, the mandate of the Bahrain Monetary Agency was expanded to make it the single regulator of all financial institutions in Bahrain. The supervision and regulation of the insurance sector and the capital markets sector now fall under the BMA.

The BMA has also been active in encouraging the growth and development of Bahrain as a regional financial centre, in particular the Islamic banking and insurance industry.