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  • Licensing

    • AU-1.1.8

      Persons wishing to be licensed to undertake regulated microfinance services within or from the Kingdom of Bahrain must apply in writing to the CBB. An application for a license must be in the form prescribed by the CBB as indicated in Chapter AU-4.

      January 2014

    • AU-1.1.9

      The CBB will review the application and duly advise the applicant in writing when it has:

      (a) Granted the application without conditions;
      (b) Granted the application subject to conditions specified by the CBB; or
      (c) Refused the application, stating the grounds on which the application has been refused and the process for appealing against that decision
      January 2014

    • AU-1.1.10

      Detailed rules and guidance regarding information requirements and processes for license applications can be found in Section AU-4.1. As specified in Paragraph AU-4.1.14, the CBB will provide a formal decision on license application within 60 calendar days of all required documentation having been submitted in a form acceptable to the CBB.

      January 2014

    • AU-1.1.11

      All applicants for microfinance institution licenses must satisfy the CBB that they meet, by the date of their license, the minimum conditions for licensing, as specified in Chapter AU-2. Once licensed, licensees must maintain these criteria on an on-going basis.

      January 2014

    • AU-1.1.12

      Licensees must not carry on any other business in the Kingdom of Bahrain or elsewhere other than microfinance business and activities directly arising from or incidental to that business.

      January 2014

    • AU-1.1.13

      Rule AU-1.1.12 is intended to restrict licensees from undertaking any material non-financial business activities. The Rule does not prevent a licensee undertaking commercial activities if these directly arise from their financial business: for instance, in the context of Islamic contracts, such as murabaha, ijara and musharaka, where the company may hold the physical assets being financed or leased. Nor does it restrict a licensee from undertaking commercial activities if, in the judgment of the CBB, they are incidental and do not detract from the financial nature of the licensees.

      January 2014