Authorized Replace: Purchase Now, Pay Later – Monetary Providers

To print this text, all you want is to be registered or logged in to

The Central Financial institution of Bahrain (the “CBB”) issued amendments to the CBB Rulebook Quantity 5 (Kind 3: Financing Firms) on 8 February 2022, to primarily incorporate modern enterprise fashions for financing client merchandise inside its scope as a part of short-term financing actions in an effort to maintain tempo with trade evolution and client calls for for monetary companies.

A brand new type of firm will likely be permitted to enter the market of on-line retail platforms within the type of “Purchase Now, Pay Later” (“BNPL”) firms. BNPL is a type of short-term lending which allows customers to make purchases and pay for them later, sometimes with out an extra rate of interest.

A number of modifications will come up inside this class of short-term financing firms:

  • A discount within the restrictions of possession percentages of Controllers;

  • Acceptable administration buildings to assist technology-based enterprise fashions;

  • A capital that’s decided by the character, scale and magnitude of exercise. Entities intending to utilize the BNPL scheme are usually not required to have a minimal capital of BHD 5,000,000 , as is the case with typical finance companies.

BNPL agreements, have gotten a extra well-liked cost different, significantly when procuring on-line. These modifications are a part of a current collection of modifications made by the CBB to the CBB Regulatory Framework with the intention to sustain with market development, significantly within the discipline of monetary know-how (Fintech). Furthermore, the introduction of extra types of firms into the CBB Rulebook permit for elevated market choices for the buyer, bringing number of selection inside a free-market.

The content material of this text is meant to offer a common information to the subject material. Specialist recommendation ought to be sought about your particular circumstances.

POPULAR ARTICLES ON: Finance and Banking from Bahrain

Establishing A Finance Firm In Nigeria

Authorized Pavestones

Micro, Small and Medium Enterprises (MSMEs) play a major function within the growth of the financial system of many nations. In response to the World Financial institution, MSMEs signify about 90% of companies worldwide.

Debt Securitization As A Kind Of Financing

The Trusted Advisors

As a result of developments within the monetary sector, new and modern monetary methods and devices have been launched to produce capital sources.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top