Bahrain start a microfinance bank in Grameen Bank model

Family Bank, a microfinance bank licensed by the central bank of Bahrain, opened in Bahrain on Thursday, said a statement of Yunus Centre. Nobel Laureate Prof Muhammad Yunus and Chairman of the Board of Trustees of the Royal Charities Organisation Prince Shaikh Nasser bin Hamad Al Khalifa inaugurated the bank at a ceremony at the Gulf Hotel Convention Hall in Bahrain. The ceremony was held under the patronage of King Hamad bin Isa Al Khalifa. Minister for Social Development Dr Fatima Al Balooshi was also present. Family Bank will provide collateral-free microcredit to 4 ,500 borrowers within three years, following the Grameen Bank approach. Besides being a window for the Grameen model, the bank will also lend to individuals for investment in micro-enterprises and work as a wholesale fund to support nongovernmental organisations in providing microcredit in the kingdom. Grameen Trust, a member of the Grameen family of companies, has been working with the government of Bahrain to develop Family Bank since 2007. The initiative with a memorandum of understanding between the Ministry of Social Development and Grameen Trust, during Yunus' visit to the kingdom in February 2007. During that visit, the king gave the noble laureate the medal of the First Order of Merit, the highest honour of the Kingdom of Bahrain. In May 2007 , Grameen Trust conducted a feasibility study in Bahrain and developed a microcredit programme for the bank. Grameen Trust deputed the chief executive from Bangladesh, who will implement the flagship microcredit programme. The loan products of Family Bank will be offered in various tiers, with $125 for first- time microcredit borrowers. The bank's paid up capital is $31.25 million, while the authorised capital is $37.5 million. The social development ministry and the Royal Charity Organisation own 63 percent of Family Bank. The other shareholders of the 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 bank.