Bahrain cen­tral bank amends crowd­fund­ing rules

Banking Frontiers - - News Regulator -

The Cen­tral Bank of Bahrain (CBB) has changed the rules per­tain­ing to ‘crowd­fund­ing’ as it found that crowd­fund­ing has glob­ally wit­nessed in­cre­men­tal growth aided by fin­tech plat­forms. The changes in­clude a re­duc­tion in min­i­mum cap­i­tal given the na­ture of the risk pro­file of the crowd­fund­ing plat­form op­er­a­tor, re­mov­ing the pro­hi­bi­tion on busi­ness to busi­ness lend­ing or in­vest­ing through plat­forms, rais­ing the lim­its for lend­ing, re­moval of cer­tain re­stric­tive con­di­tions for lend­ing /in­vest­ing and a con­sumer pro­tec­tion mech­a­nism whereby, the lender or in­vestor has the right to with­draw the com­mit­ment made within 48 hours from the time he /she makes a com­mit­ment to lend or in­vest. Khalid Ha­mad, ED at the CBB, said the cen­tral bank has con­sid­ered the lack of ac­cess to credit and cap­i­tal for some of the smaller busi­nesses among other fac­tors in mak­ing these im­por­tant amend­ments to the rules.

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