Three Turkish banks have been granted licences by the Bahrain Monetary Agency (BMA) to set up offshore banking units (OBUs). The banks are Demir Bank, with paid-up capital of $81 million and assets of $2,100 million, Korfez Bank, with paid-up capital of $114 million and assets of $1,000 million and Bank Kapital, a subsidiary of Turkey's Ceylan Holding Company, with paid-up capital of $41 million and assets of $305 million.

'This amply demonstrates the confidence that the international banking community reposes in Bahrain,' said Khalid Ateeq, executive director - banking control, adding that the new licences have raised the total number of financial institutions operating in the country to 182. This year, BMA has granted 11 new licences to financial institutions, including the three Turkish banks, four investment banks, four representative offices, two investment advisory services and another OBU. Ateeq said several other applications are also being evaluated by BMA.

'The applications are in the process of being vetted. We apply very strict criteria and standards before awarding approval for financial institutions to establish a presence in Bahrain,' he said.