The Central Bank of Bahrain (CBB) said it had temporarily suspended new licences for Islamic banks in the Kingdom.

It had earlier done the same for commercial banks and exchange houses after studies showed there were sufficient financial Institutions to meet local demand.

This was revealed by the bank's licences and policies director Ahmed AI Bassam on the sidelines of an islamic banking conference.

The CBB on Tuesday said it will 'take its time' in issuing new banking licences given the financial crisis but denied it had put such issuances on hold altogether.

'We're carefully reviewing the applications, we're taking our time, being very careful with granting new licensing in the current situation,' a CBB spokeswoman said on Tuesday.

Bassam said the central bank will review the applications as soon as the economic and financial situation improves. He did not indicate which banks are affected.