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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 authorised as a bank in that territory.
      Amended October 2010
      October 2007

    • LR-2.1.2

      Where the Islamic bank licensee is a branch of a foreign bank, in deciding whether to grant a license, the CBB 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.

      Amended: July 2017
      October 2007