Bahrain REAL ESTATE MORTGAGE LOANS BANKS
Bank activity in Bahrain was issued in the beginning of 20th century with the functioning beginning in 1920 of branch Istern of Bank (now Standard Charterd Bank).
Then British Bank îâ by iddl Ist (now EjchEsBiSi) in 1944, Bank îâ Bahrain (now National bank of Bahrain) in 1957 as the first registered local bank has been created, and the Arab Bank Limited These 1960 four banks satisfied at that time requirements of clientele, financing trade and providing reception of deposits. After the first oil boom in 1973 and the followed accelerated development of economy, between 1969 and have appeared 15 more commercial banks 1977.

After a considerable rise in prices for oil in the beginning 1970 of Gulf State have received the big financial assets in the order. Banks existing in region have felt that they to participate in a condition in reinvestment means by presence at the region. However, these banks still were not ready to processing of such great sums. As a result, in 1973 the Agency which has taken the lead on the organisation of placing of offshore banking establishments which should function in Bahrain has been created and provide the mechanism of investment of surplus of means in region. Presence of offshore banks has coincided with desire of Bahrain to diversify the economic activities. The first offshore banks in Bahrain were Citybank and Algemejne Bank (in 1975) . The quantity of offshore establishments has increased to 76 in 1984, and then has decreased to 48 in 2002 as a result of development of the international financial sphere and the appeared tendency to consolidation in bank groups and between them. In 1977 the Agency has entered the third category of the bank licences named by licences for investment bank activity which stood out to the banks into practice, wishing to be engaged in investment activity. Bahrain the Investment cop Bank (1977) was the first of these banks.

• Last years Bahrain makes serious efforts on modernisation of the economy and political system, and has achieved considerable success in positioning of as large financial centre, especially in the Islamic bank world. In the beginning of 2004 the offshore financial sector had 70 billion dollars of actives, and the day cumulative turn of a foreign currency in all financial institutions of Brunei makes nearby 4 ìëðä US dollars.

Monetary and credit agency of Bahrain

This Agency carries out functions of the central bank of the country and regulates activity of financial sector. According to the law ¹ 21/2002, the Monetary and credit agency of Bahrain possesses large powers in sphere of regulation of securities.  became the unique body regulating the market of the capital in Kingdom Bahrain. The Management under the control of the markets of the capital in Bahrain, acquired the right to supervise and regulate the markets of capitals in Bahrain has been created. The Management main task is maintenance of a transparency, justice and an order in the market by introduction of the international standards and protection of investors that as a whole promotes protection of integrity of Bahrain and its high reputation as financial distribution centre of region. ÄÊÀÁ bears full responsibility for the primary both secondary markets and financial intermediary, regulating and supervising thus listing of securities and all other tools of the financial market offered the public, demands for performance of requirements and information disclosure. The management also introduces the international standards in sphere of disclosure of the information and provides a transparency of the financial market, supervises activity of stock exchanges (approves creation of other financial institutions), supervises calculations, deposits and system of storage of values, Broker firms and markets-makers (the firms establishing positions under securities).

All offers under securities should correspond to standards of disclosing of the information before clients. Such standards regulate the offer, listing and sale of securities in Kingdom Bahrain. Trade and transactions with quoted securities should be carried out according to trading rules and an order existing at Stock exchange of Bahrain. Off-exchange transactions with quoted securities are supposed in some unusual cases with the permission of DKAB.

Bank licences

Now DKAB grants following bank licences:

The full licence of commercial bank (‘ FCB ’);
The licence for offshore bank activity (‘ OBU ’);
The licence for investment bank activity (‘ IBL ’).

Islamic finance

Bahrain is the leading centre of the Islamic finance on Middle East. The first Islamic bank in Bahrain has been created in 1979 from licensing Bahrain by Islamik Bank. Since then the sector has considerably grown that corresponds to growing aspiration of clients to carry out the financial activity according to an Islamic principle of “Sharja”, i.e. participation in profits.

Now exist 28 Islamic financial institutions which have obtained the licence in Bahrain, including 5 full commercial banks, 16 investment banks and 3 offshore banks. Islamic banks give a number of the products varying from traditional Islamic structures, such as to Murabaha, Dzhiara, Mudaraba, Istishnaa (Murabaha, Ijara, Mudaraba, Musharaka, Al Salam and Istisna’a), to the limited and unlimited investment bills, syndicate and the other structures used in traditional financial activity which have been modified for conformity to principles «øàðüÿ» Is scarlet-saoam also.DKAB has entered an extensive set This set corrected reasonable business management in Islamic banks in practice in the beginning of 2000 is called Safety measures by granting of the information and regulation (PIRI). Rules cover such aspects as sufficiency of own capital, quality of actives, management of an investment abacus of corporate persons, management of liquidity.

The organisation of book keeping and audit for Islamic financial institutions (ÎÁÀÈÔÓ) has been created on February, 26th, 1990 (according to Islamic chronology - 1 safara) and has affirmed within next year as Bahrain as the international independent non-profitable organisation. He/she is the leading legislator in business of the international standards of Islamic financial institutions in sphere of book keeping, audit, management and a transparency. The organisation closely co-operates with such institutes as the International council of accounting standards, its standards are based on the international standards of book keeping. All Islamic financial institutions licensed in Bahrain are obliged to correspond to requirementsOBAIFU.

The control centre of liquidity (LMC), created in Bahrain in 2002, aspires to develop the active secondary market of short-term exchequer products of “Sharja”. Various pools of actives with variable risks and profits, and various terms Here concern. Islamic banks and corporations with superfluous liquidity form primary investment base for «ñóêóêñ» (short-term Islamic securities).
The international Islamic financial market (IIFM) has begun the work in April, 2002 as result of the conclusion of the joint agreement between Islamic bank of development, Monetary and credit agency of Bahrain, the Central bank of Indonesia, Labuansky administration of offshore financial services (representing Malaysia), the Central bank of Sudan and the Ministry of Finance of Brunei. Main objective IIFM is maintenance of functioning of joint structure for continuous growth of the Islamic financial market on the basis of rules and principles of “Sharja” as worthy, viable alternative of traditional bank system; the further harmonisation and unification of methods of “Sharja” for creation of Islamic bank production and universal methods of work; Encouragement of a great number of Islamic financial institutions to participation in work of the market by representation of a wide range of corresponding “Sharja” of products and formation of the active secondary market that promotes liquidity of turnaround tools of the market.

Bahrain Divelopment Bank

The main engine of financial development of Bahrain is Bahrain Divelopment Bank (BDB), created in 1992 for development and expansion of investments into the industry, trade and business. BDB gives a number of financial possibilities for realisation of small and average projects, including:

Short - and long-term compound financial tools for financing of acquisition of the basic means and áîëüøåé working capital parts;
The brave capital in the form of joint-stock participation in new and existing projects;
The organisation of leasing of the equipment;
Financing of requirements for a working capital for raw materials purchase;
The organisation of financing of export production from Bahrain;
The bank establishes a maximum level of potential losses at delivery of loans at level of 500,000 Bahrain dinars (1 326 260 US dollars) on the project. Considering aspiration of Bank to promote investments into Bahrain, Bank can offer the following:

Excellent interest rates;
Flexible preferential terms of payments (till 3 years);
Flexible terms of return of loans;
Extremely the competitive bank commissions.
Projects corresponding to established requirements are subject to check in and licensing according to the Kingdom Bahrain legislation. Such projects should be economically proved, it is necessary to apply the feasibility report made of one their recognised consulting firms on them. BDB renders services to investors of any nationality, but demands thus that all of them were quite solvent and had sufficient financial resources for support of the further realisation of the project. The project should have corresponding structure of the management, the accounting documentation should be conducted by the appropriate amount, all actives of the project should be insured, and áåíåôèöèàðîì should be BDB.