Bahrain cbank starts investigation at TIBC

Bahrain's bank regulator has launched an investigation at The International Banking Corp (TIBC) after its Saudi owner said it had discovered substantial irregularities in its financial services arm.

The Central Bank of Bahrain (CBB) is investigating TIBC after its owner, Saudi-based Al-Gosaibi Group (AHAB), plus rival Awal Bank and its owner, the Saudi-based Saad Group, defaulted on some obligations in one of the biggest casualties yet from the credit crisis in the Gulf Arab region.

"The CBB has exercised its statutory powers to commission a report on TIBC from an internationally recognised accounting firm. We are unable to comment further on an on-going investigation," it said in an emailed statement on Tuesday.