• BR-1 BR-1 Regular reporting — Annual requirements

    • BR-1.1 BR-1.1 Locally incorporated banks

      • BR-1.1.1

        The content of this section is applicable to all locally incorporated banks licensed by the Agency in the Kingdom of Bahrain.

      • Annual reports

        • BR-1.1.2

          All banks, referred to under paragraph BR-1.1.1, are required to submit to the Agency their annual reports within 3 calendar months of the date of such reports.

      • Supplementary information

        • BR-1.1.3

          In addition to the reports required in paragraph BR-1.1.2, banks are also required to submit to the Agency the following information:

          (a) The external auditors' management letter;
          (b) Audited financial statements of all subsidiaries (whether or not consolidated) and all overseas branches (including their accounting policies where these policies differ from those of the parent bank), along with their management letters;
          (c) The bank's group structure and the Bahrain office's internal organisation charts;
          (d) A list of non-performing and rescheduled loans (including name of customer, country, amount outstanding, net interest income for the year attributed to profit & loss and the reasons for attributing interest to income); and
          (e) A reconciliation statement between the audited financial statements and the relevant prudential returns and monthly statistical returns.
          (f) Report on corporate governance framework attached to year-end PIR (see Appendix BR 10 for sample report)

      • Compliance

        • BR-1.1.4

          In addition to the provisions of section AU-3.7, the Audited financial statements or the annual reports of these banks should be in full compliance with:

          (a) the International Accounting Standards; and
          (b) the disclosure requirements set out under sections PD-1.3 and PD-1.4.

    • BR-1.2 BR-1.2 Branches of foreign banks

      • BR-1.2.1

        The content of this section is applicable to branches (licensed by the Agency) of foreign banks.

      • Annual audited financial statements

        • BR-1.2.2

          All branches, referred to under paragraph BR-1.2.1, are required to submit to the Agency their annual audited financial statements of their Bahrain operations within 3 calendar months of the date of such statements. Such accounts must be prepared in a format agreed between the branch and its external auditors.

      • Supplementary information

        • BR-1.2.3

          In addition to the statements required in paragraph BR-1.2.2, branches are also required to submit to the Agency the following information:

          (a) the external auditors' management letter;
          (b) a list of non-performing and rescheduled loans (including name of customer, country, amount outstanding, net interest income for the year attributed to profit & loss and the reasons for attributing interest to income);
          (c) a reconciliation statement between the audited financial statements and the relevant prudential returns and monthly statistical returns;
          (d) the head office's annual audited financial statements; and
          (e) a statement of provisions as set out in paragraph BR-1.2.4, below.

      • Provisions against branch assets in head office books

        • BR-1.2.4

          If specific provisions against the assets of a branch are maintained in the books of its head office, the Agency should be advised on an annual basis and in writing (along with the information listed under paragraph BR-1.2.3) of the amount of provisions set aside for the Bahrain branch's bad debts (and any other non-performing assets). For detailed guidance related to this subject, see section CM-4.3.

      • Compliance

        • BR-1.2.5

          The annual accounts should be in full compliance with the International Accounting Standards.

    • BR-1.3 All licensed banks

      [This Section deleted 07/2006]