The new law No. (9) for the year 2010 became effective from the date of its publication in the Official Newspaper to replace the Banking Law No. (2) for the year 2002, and shall supersede any contrary provisions of this law.

The process of issuing this law came in order to maintain a stable and strong financial system based on market disciplined professional competitions, and maintain the banking system safe, sound and stable which also aim to strengthen the public confidence in the banking system.

This law is underpinned on the best international practices, especially the core principles of effective banking supervision and requirements of the Basel Committee on Banking Supervision, as stated in line with international financial reporting standards, accounting and auditing standards and regulations for Islamic financial institutions, reinforcing the principles of governance, disclosure, transparency and accountability.

The law also gave the authorities to the Monetary Authority to develop their regulatory performance and to enable them to keep abreast of developments and changes in global economies by providing a legal framework for the establishment of deposit insurance and management of the RTGS and developing credit registry system and classification of clients and supervision on specialized lending institutions.

In addition to providing legal provisions that contributes in treating the weak banks such as merger, liquidation, guardianship and other materials.

The process of issuing a new banking law is considered one of the legislative developments steps which included the Strategic Plan done by the Monetary Authority for the transition to a central bank with full powers and authorities.