Bahrain banks in funding crisis as Arcapita files for bankruptcy « ArabianMoney

Bahrain banks face a major funding crisis this year as the eurozone sovereign debt crisis is forcing its banks to pull money out of the Middle East, while the ongoing social and political instability of the island state does not sit well with banks who put the safety of their staff first and money second.

Yesterday Bahrain-based Arcapita, an investment bank filed for US bankruptcy protection after talks with creditors over a $1.1 billion debt broke down. Arcapita CEO Atif Abdulmalik told The National that the negotiations were ‘negatively impacted’ by the eurozone crisis. Under US Chapter 11 protection Arcapita can try again.

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