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  • CM-5.8 CM-5.8 Policy statements

    • CM-5.8.1

      The Agency requires each Bahrain incorporated bank to set out its policy on large exposures, including limits for differing types of exposures to individual customers, banks, corporates, countries and economic and market sectors, in a policy statement which should be formally approved by the Board of Directors. Furthermore, banks should not implement significant changes to these policies without prior discussion with the Agency.

    • CM-5.8.2

      The policy statement should identify 'connected counterparties' and the bank's policies towards lending to and investing in these counterparties.

    • CM-5.8.3

      The bank should explain and justify any requests for exemptions for lending to/investments in connected counterparties.

    • CM-5.8.4

      Each bank will be expected to justify to the Agency in the policy document its policy on exposures to individual counterparties, including the maximum size of an exposure contemplated.

    • CM-5.8.5

      Exposures to counterparties connected with the bank will continue to be particularly closely examined.

    • CM-5.8.6

      The necessary control systems to give effect to a bank's policy on large exposures should be clearly specified and monitored by its Board.

    • CM-5.8.7

      Banks are required to implement appropriate internal systems and controls to monitor the size of their capital base on a daily basis to ensure that the limits detailed in this module are not exceeded.