Regulatory Alerts2014-01-21
Added · Updated
Microfinance Institutions Draft Modules Volume 5
The Central Bank of Bahrain issued this feedback statement to finalize regulatory requirements for licensed Microfinance Institutions, addressing industry comments on capital maintenance, deposit-taking permissions, and loan limit adjustments. The revised modules mandate a minimum paid-up capital of BD five million, authorize MFIs to accept deposits through trust accounts within the payments system, and increase maximum microcredit amounts to BD fifteen thousand for eligible low-income individuals and small enterprises. Furthermore, the framework standardizes Annual Percentage Rate disclosures for credit agreements, clarifies net liquid asset and non-performing facility calculations, and requires all MFIs to submit semi-annual financial statements within two months of the reporting period.