Grameen Type Bank Opens In Bahrain
Press Release
Nobel Laureate Professor Muhammad Yunus and the Chairman of the Board of Trustees of the Royal Charities Organization, Prince Shaikh Nasser bin Hamad Al Khalifa inaugurated the Family Bank, a microfinance bank
licensed by the Central Bank of Bahrain, at a ceremony held at the Gulf Hotel Convention Hall in Bahrain on Thursday, January 14, 2010. The ceremony was held under the patronage of His Majesty King Hamad bin Isa Al Khalifa and attended by the Minister for Social Development Dr. Fatima Al Balooshi.
The Family Bank will provide collateral-free microcredit to the needy families of Bahrain following the Grameen Bank Approach. Besides a window for the "Grameen Model," the Family Bank will also lend to individuals for investments in microenterprise and work as a wholesale fund to support NGO's providing microcredit in the Kingdom.
Since 2007 Grameen Trust, member of Grameen family of companies, has been working with the Government of Bahrain developing the Family Bank. The initiative to establish a microfinance bank in Bahrain started through the signing of a Memorandum of Understanding between the Ministry of Social Development and Grameen Trust during Professor Yunus' visit to the Kingdom in February 2007 at the invitation of His Highness Shaikh Salman bin Hamad bin Isa Al Khalifa, the Crown Prince and Commander in Chief of Bahrain Defense Forces. During that visit
Professor Yunus was given the state Honour by the King by giving the Medal of the First Order of Merit, the highest honor of the Kingdom of Bahrain. In May 2007 Grameen Trust conducted a feasibility study in
Bahrain and developed the microcredit program of the Family Bank. Grameen Trust has deputed the Chief Executive for the Grameen program of the Family Bank from Bangladesh who will implement the flagship
microcredit program.
The Family Bank plans to provide collateral-free microcredit to 4,500 borrowers within three years. The primary beneficiaries of the Family Bank's services will be provided to needy families and the unemployed young of Bahrain. The loan products of the Family Bank will be offered in various tiers with $125 for first-time microcredit borrowers.
The Paid up Capital of Family Bank is $31.25 million, while the Authorized Capital is $37.5 million. The Ministry of Social Development and the Royal Charity Organization owns 63% of the Family Bank. The other shareholders of the Family Bank are Ahli United Bank, Kuwait Finance House, Bank of Bahrain and Kuwait and Ithmaar Bank.
Grameen Trust is an implementing partner and has a seat on the Board of Directors of the Family Bank.
