MPs demands to ban conventional banks and allow only Islamic banks to operate in Bahrain have been shot down by Finance Minister Shaikh Ahmed bin Mohammed Al Khalifa.

He said that Bahrain was trying to become a regional Islamic banking centre, but calls to scrap conventional banks were misguided, reported the Gulf Daily News (GDN), our sister publication.

“Islamic banking is a good approach, but we can't take it as a standard in the sector - we have to have conventional banking in order to maintain our strengths,” said Shaikh Ahmed.

Plans

“We are now working to become the region's Islamic banking centre with long-term plans and the platform is ready for implementation.”

He was speaking as MPs approved the closing budget statement for the Future Generations Fund, which saves $1 from every oil barrel exported and reinvested.

It has now been referred to the Shura Council with recommendations to form clear investment policies that are diverse and safe, investing in local banks, investment of more than half of the fund's coffers, creating a more comprehensive auditing system, establishing a new employment structure and not investing in fields that contradict Islamic principles. - TradeArabia News Service