Application for new Islamic bank rejected - Khaleej Times Online

Quoting: A Central Bank source said,"We are rather encouraging mergers between smaller entities to form a major financial institution rather than to encourage establishment of new banks whether Islamic or conventional. The Central Bank policy is to supervise the banking sector operations and to help improve the entire industry. I guess the more we set up new banks the greater will be the risks.We are now on the verge of implementing Basel 11 Capital Accord which requires substantial rise in banks' capital.The Central Bank has rejected a number of such applications in the last few years."