The Bahrain Middle East Bank (BMB) has informed shareholders via a filing on Bahrain Bourse this morning that it has been directed by the Central Bank of Bahrain (CBB) to seek resignation of its board of directors with immediate effect.
The regulator has asked the bank to also ask the chief executive and chief financial officer to resign immediately as it does not consider them "fit and proper".
The CBB has also asked the bank to increase its shareholders' equity before the end of the year.
BMB has also been directed to terminate dealing with specified trade finance parties.
The banking and financial sector regulator said it is unable to comment on the bank's quarterly financial statements as of September 30 this year due to "identified violations and irregularities".
The statement is attributed to the bank's head of compliance Mohammed Alhusaini.
Trading on the bank's shares at BHB was suspended on November 15 following a directive from the CBB.
Also on November 15, the bank said in a bourse filing that the resignation of Wilson Benjamin from position of chairman and Karunaker Nampalli as board member was accepted on November 7.
The statement said the two represented Kuwait-based Al Fawares Holding Company, which continues to hold 14.48 per cent of shares in BMB.
Officials from BMB could not be reached for comment.
BMB is a fully licensed bank since 1982: it's been listed on the Bahrain Bourse since 1989.
It also works as a clearing and correspondent bank in cooperation with Standard Chartered Bank in Frankfurt.
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