The Bahrain Monetary Agency (BMA) is looking into irregularities evident in credit facilities extended by The Bahraini Saudi Bank (BSB). The agency’s information indicates that complications led to the distribution of bad loans valued at 17 million Bahraini dinars ($45 million).
According to the BMA, facilities were offered without following the necessary internal banking procedures. It assured that it would provide BSB with sufficient reserves and securities to cover any losses.
The central bank has commissioned KPMG as external reporting accountants to provide it with a detailed report on the banking irregularities. It has also requested BSB’s Board of Directors to meet as quickly as possible, with BMA representatives present.
Established in 1985, BSB was founded with a paid-up capital base of BD 20 million and is equally held between Bahraini and Saudi shareholders. Headquartered in Manama, the bank operates six branches across Bahrain. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
