Shareholders at Bahrain-based First Investment Bank have agreed to put the company into liquidation, at an annual and extraordinary general meeting.

A liquidation committee has been set up to oversee the process if the bank cannot find an outright buyer.

The bank was established at the end of 2007 but by the time it was operational the following year, the global financial crisis severely restricted investment opportunities.

'The bank faced various problems due to the crisis which led to its inability to indulge in planed projects,' said chairman Dr Mohammad A Al Alloush.

Deputy chief executive officer Yousif Al Thawadi said the liquidation process could take up to six months unless someone came along to make a bid or acquire a major stake.

'The bank has a sound balance sheet and very liquid, with most of its investments in liquid instruments,' Al Thawadi said.

'Last year the performance made a little money and I believe there could be some serious buyers out there.

'It's just that shareholders want their liquidity out,' he added.

Central Bank of Bahrain Islamic financial institutions supervision director Hussain Ali Sharaf said they had been aware of the situation and the desire of shareholders to either liquidate the bank or find potential buyers.-TradeArabia News Service