Bahrain cbank imposes fine on 20 retail banks
Manama, August 29, 2010
Twenty retail banks in Bahrain were fined in May for failing to keep customer records up to date with the Benefit Company.
As part of a clampdown, the Central Bank of Bahrain (CBB) has been fining banks BD50 for each account that has errors which have not been properly updated on a monthly basis.
"We have been issuing fines to banks that do not provide the necessary information on time for about three years," said CBB retail banking supervision director Yousif Hassan.
"We are doing this in order to protect the consumer and it is essential that the Benefit Company has this information so that it can pass it on to other banks who have been approached by customers looking for a loan or consumers wanting to open an account.
"If banks do not have access to this up to date information then it can slow down the decision-making process to the detriment of the consumer," Hassan said.
He said that errors in returns to the Benefit Company, which are passed on to the CBB, were running at almost 2pc in May and he expected the June figures to be similar.
"The number of errors in returns is substantial, though not significant or high in comparison to levels in other countries, but we aim to get the figure down to zero.
"There are a number of retail banks already achieving this and the level of errors among those who have not achieved this varies from bank to bank.
"It is up to banks to update this information accurately on a monthly basis to protect the consumers," he added. "We will continue to levy fines on banks who do not achieve this.
"About 99pc of the data we receive is up to date and accurate," said Benefit Company national credit reference bureau supervisor Hessa Hussain.
"It can fluctuate a little from month to month, but over the past three years the level of error has probably been fairly steady and 1pc." - TradeArabia News Service