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  • LR-2.1 LR-2.1 Condition 1: Legal Status

    • LR-2.1.1

      The legal status of an Islamic bank licensee must be:

      (i) a Bahraini joint stock company (BSC); or
      (ii) a branch resident in Bahrain of an Islamic bank incorporated under the laws of its territory of incorporation and authorized as a bank in that territory.

    • LR-2.1.2

      Where the Islamic bank licensee is a branch of an overseas bank, in deciding whether to grant a license, the BMA will pay close regard to its activities elsewhere and how these activities are regulated. If the Islamic bank licensee is not regulated elsewhere or in a jurisdiction not substantially compliant with Basel Core Principles or FATF standards, then an application for licensing can only be considered after exhaustive enquiries into the bank's shareholders, management structure and financial position.