Regulatory Alerts2026-03-10
Consultation on Proposed Revision to Initial Capital Requirements
The Central Bank of Bahrain proposes reducing the minimum initial paid-up capital for newly licensed retail, wholesale, and financing companies to BD 2 million and BD 250 thousand, respectively. These revised thresholds apply directly to new license applicants, while existing institutions must obtain regulatory approval for capital structure adjustments. The reduction lowers market entry barriers to attract investment and foster specialized financial services, all while preserving the existing risk-based Basel III capital adequacy framework.
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