New Banking Bill Proposed in Bahrain

MANAMA - A conservative lawmaker presented on Sunday a draft law banning conventional banking in Bahrain.

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Published: Tue 23 Feb 2010, 11:14 PM

Last updated: Mon 6 Apr 2015, 10:21 AM

The bill states the formation of a high Fatwa and Religious Authority affiliated with the Cabinet to control the sector, that will responsible of ensuring that all banking operations meet Shariah.

The bill, being pushed by Al Asala bloc member Hamad Al Muhanadi, covers all financial institutions and once enforced, all of them should change their conventional interest systems to Islamic murabaha and mudharaba systems. The bill gives those organisations a period of three years to correct their situations or face penalties.

shamada@khaleejtimes.ae


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