03/06/2009
The Gulf Cooperation Council discussed the supervision and control of the banking system in the Gulf at its meeting in Riyadh recently. They discussed a study of standardized regulatory and supervisory legislation necessary for the establishment of the monetary union in GCC countries, as well as other steps that GCC member states need to take for the application of the single currency. The General Secretariat of the GCC in conjunction with Booz & Company is working on the implementation of the project expected to be completed by mid-March 2010.
The first draft of the unified supervision and control system for GCC banks was presented to the Council along with a number of recommendations that will be implemented in the second phase of the project.
During another seminar organized by the Financial Stability Institute in Amman last week, GCC members discussed the financial stability and liquidity risks involved in the currency merger.
Both meetings are part of the technical preparations for the infrastructure required for the GCC Monetary Union.
