Credit Agricole will not be last bank to shut shop in Bahrain
\nReuters\/Bloomberg\/Dubai 15 August, 2011<\/p>\n
Credit Agricole Bahrain headquarters which is set to shut down. The French lender\u2019s move is a blow for the one-time regional financial hub of the Arabian Gulf<\/p>\n
The consequences of Bahrain\u2019s turbulent spring are mounting.<\/p>\n
First, the Formula 1 Grand Prix was cancelled, now Credit Agricole has decided to shift its regional headquarters to Dubai.<\/p>\n
The French lender\u2019s move is a blow for the one-time regional financial hub of the Arabian Gulf region. But the Shia led protests earlier this year and subsequent crackdown by Bahrain\u2019s Sunni-ruling minority \u2013 with the help of troops from its Arab neighbours \u2013 is only one reason why financial institutions are saying bye-bye to Bahrain.
\nInternational banks are rushing to cut costs as revenue falls and risk grows. That makes it harder for them to maintain their previous practice of keeping multiple bases in the Middle East \u2013 a region that still generates relatively little revenue.<\/p>\n
The political instability, combined with a growing presence in Dubai, will have made Credit Agricole\u2019s decision easier. …more<\/a><\/p>\n