International-Business-Dr-R-Chandran-E-book

Singapore
institutions
are allowed
only if they
are atleast
equivalent to
US$ 50,000.
Offshore
banks cannot
extend loans
to residents
of Baharain;
cannot offer
current
accounts.
Typically
offshore
banking is
operated
through
Asian
Currency
Units
onshore
banks must
follow the
same rules.
Offshore
institutions
are required
to disclose
fully their
ownership
structure.
They are sub
subject to
regular
reporting
requirements
to the
Baharain
Monetary
Authority
(BMA) on a
monthly,
quarterly,
semiannual
and annual
basis.
Prudential
requirements
are applied
on a
consolidated
basis.
ACUs are
exempt from
several
prudential
regulations,
most natbly
the reserve
requirements
78
International Business- Dr. R. Chandran
ACU are
taxed at a
concessionary
rate of 10
percent
(normal
corporate tax
rate is 26
BMA, which
also
supervises
them. A
deposit
insurance
scheme is in
place for all
commercial
banks. The
BMA has the
ability to
provide lender
of the last
resort (LOLR)
facilities to
onshore banks
are excluded
from LOLR
support.
ACUs must be
licensed by the
MAS, which
also supervise
them.
Inspections on
the accounts
of the ACUs
Only for Private Circulation