BMA approves the establishment of two new banks
The Bahrain Monetary Agency (BMA) has granted two separate licenses, the first to ADDAX International Bank and the second to the National Bank of Bahrain to establish new operations in the state.
The Bahrain subsidiary to be named ADDAX International Bank will have an authorized and paid-up capital of $10 million. The bank will operate as an investment advisor/broker and enter into distribution agreements with third parties, in addition to being able to provide other financial advisory services. ADDAX will focus on marketing instead of managing investment products. The product range includes traditional mutual funds, guaranteed funds, savings and pension plans, Islamic funds and others.
The Bank's main shareholder is International Financial Advisors, which is an investment company licensed by the Central Bank of Kuwait. It will have a 20 percent stake and the rest is divided among other Gulf shareholders.
The NBB license is for the establishment of an Islamic Financing Company with an authorized and paid-up capital of $30 million. The Islamic financing company will operate as a Shari'a compliant financer in the local market and will provide loans to the public based on the Shari'a law.
The Kingdom of Bahrain is the leading international financial center in the Middle East, boasting the largest concentration of financial institutions in the region. With the granting of the new licenses, the number of financial institutions currently licensed by the BMA totals 354, of which 182 are banks and banking-related institutions, 159 insurance and insurance-related firms and 13 capital market brokers. — (menareport.com)
© 2003 Mena Report (www.menareport.com)