• HC-B HC-B General guidance and best practice

    • HC-B.1 HC-B.1 Guidance provided by other international bodies

      • Basel Committee: Enhancing Corporate Governance in Banking Organisations and High Level Controls for Banks

        • HC-B.1.1

          These papers (see www.bis.org/publ/bcbs56.pdf) issued in September 1998 and September 1999 provide guidance on corporate governance and high-level controls in banks. These papers form part of an ongoing effort by the Committee to strengthen procedures for risk management and disclosure in banks.

        • HC-B.1.2

          The papers draw on supervisory experience with corporate governance problems at banking organisations and suggest the types of practices that could help to avoid such problems. They identify a number of practices as critical elements of any financial institution's corporate governance process.

        • HC-B.1.3

          The BMA draws banks' attention to the Basel papers as benchmarks of best practice for corporate governance standards and high-level controls to be followed by banks operating in the Kingdom of Bahrain.

    • HC-B.2 HC-B.2 Enforceability

      • HC-B.2.1

        The requirements of Chapter HC-1, Sections HC-1.1HC-1.4 are binding requirements, which banks and their Boards should follow on an "apply or explain" basis. If a Board or a bank elects not to follow these requirements, they must explain why to the Agency and document the reasons for not applying the concerned requirements in the Minutes of the Board. The remaining chapters are binding requirements except where shown as guidance.

      • HC-B.2.2

        This Module and Chapter HC-1 in particular supplements various provisions relating to Corporate Governance contained in Legislative Decree No. 21 of 2001 with respect to promulgating the Commercial Companies Law. In any cases of potential conflict, the Commercial Companies Law shall prevail. Compliance with this Module does not guarantee compliance with the Commercial Companies Law.