Back Custom print Link Text Only Rich Text Print

  • PD-A PD-A Introduction

    • PD-A.1 PD-A.1 Purpose

      • PD-A.1.1

        The purpose of this module is to set out the rules and guidelines that the banks should adhere to in order to enhance corporate and financial transparency through better public disclosure.

      • PD-A.1.2

        This module provides support for certain other parts of the Rulebook, mainly:

        (a) Principles of Business;
        (b) High Level Controls;
        (c) Audit Firms;
        (d) BMA Reporting Requirements;
        (e) Capital Adequacy;
        (f) Business and Market Conduct; and
        (g) Risk Management (i.e. market, credit, liquidity and operational).

      • PD-A.1.3

        This module also provides support for certain aspects relating to disclosure requirements stipulated in the BMA Law (Amiri Decree Law No. 23 of 1973) and the Bahrain Commercial Companies Law of 2001 (as amended).

    • PD-A.2 PD-A.2 Key requirements

      • General guidance and best practice

        • PD-A.2.1

          Section PD-B.1 lists the key guidance papers on disclosure as issued by the Basel Committee on Banking Supervision and International Organization of Securities Commissions. These papers serve as international best practice in financial and other disclosures.

      • Annual audited financial statements (annual reports)

        • PD-A.2.2

          Locally incorporated banks are required to publish their audited financial statements per the rules set out in the BMA law, Bahrain Commercial Companies Law of 2001 (as amended) and the Bahrain Stock Exchange regulations. The audited financial statements should be prepared in accordance with IAS.

        • PD-A.2.3

          Locally incorporated banks must, in their Annual Reports, provide timely information which facilitates market participants' assessment of them. There are seven broad categories of information (as set out in section PD-1.3 and section PD-1.4), each of which should be addressed in clear terms and with appropriate details to help achieve a satisfactory level of bank transparency.

      • Annual disclosure in the annual audited financial statements of banks listed on the Bahrain Stock Exchange (BSE)

        • PD-A.2.4

          The Directors' Report attached to the annual financial statements of banks (referred to under section PD-1.4) should contain details of the interests of Directors, chief executive officers and managers (persons as defined under section HC-2.1, respectively) in the shares of such banks. Such details should include:

          (a) total interests in the shares of such banks by individual persons mentioned above, and
          (b) changes in such interests from the previous financial year to the current financial year.

      • Semi-annual disclosure by commercial branches of foreign banks

        • PD-A.2.5

          Branches (referred to under section PD-2.2) are required by the Agency to prepare and disclose to the public the following information (in the same format as their Annual Audited Accounts) for their Bahrain operations on a semi-annual basis:

          (a) Balance Sheet, and
          (b) Profit and Loss Accounts

      • Publication of reviewed (unaudited) quarterly financial statements

        • PD-A.2.6

          Locally incorporated banks should prepare reviewed (unaudited) quarterly financial statements on a quarterly basis in accordance with International Accounting Standard 34 (Interim Financial Reporting). Such statements should be in the same form, and should be prepared on the same basis, as is required by Bahrain law for banks' annual published financial statements.

      • Disclosure of interest rates

        • PD-A.2.7

          The Agency requires all FCBs to display, by a conspicuous notice, their current effective rate of interest and charges.

      • Disclosure relating to Deposit Protection Schemes (the 'Scheme')

        • PD-A.2.8

          The Agency requires all FCBs to give prominence to the protection of deposits afforded under the Deposit Protection Scheme (see chapter CP-2) — for example in related marketing materials and in general notices featured within banking halls and in account documentation, including audited financial statements.

      • Public disclosure via the internet

        • PD-A.2.9

          Non-listed locally incorporated OBUs and IBs may apply to the Agency to disclose their quarterly financial statements via the Internet. If a non-listed locally incorporated OBU or IB wishes to cease disclosure of quarterly financial statements via the local press and use the internet instead, it must satisfy the criteria in paragraph PD-5.1.2.

    • PD-A.3 PD-A.3 Regulation history

      • PD-A.3.1

        This module was first issued in July 2004 as part of the conventional principles volume. All subsequent changes are dated with the month and year at the base of the relevant page and in the Table of Contents. Chapter UG-3 of Module UG provides further details on Rulebook maintenance and control. The most recent changes made to this module are detailed in the table below:

        Summary of changes

        Module Ref. Change Date Description of Changes
        PD-5 Jan 2005 New Internet Disclosure rules
        PD-4.1 Jul 2005 Small definition change to consumer loans
        PD-2.1, PD-3.1 Jan 2006 Revised notification requirements for disclosures
        PD-3.1, April 2006 Specific requirements to disclose changes in shareholders' equity

      • Evolution of the Module

        • PD-A.3.2

          Prior to the development of this Rulebook, the Agency had issued various circulars representing regulations covering different aspects of public disclosure requirements. These circulars have now been consolidated into this module covering regulations relating to public disclosure requirements. These circulars and their evolution into this module are listed below:

          Circular Ref. Date of Issue Module Ref. Circular Subject
          EDBC/14/96 17 Jan 1996 PD-B.2 Public Disclosure of the Trading and Derivatives Activities of Banks and Securities Firms
          BC/2/99 21 Feb 1999 PD-1.3, PD-3.2 Public Disclosure
          BC/3/02 13 Mar 2002 PD-1.3 Additional Public Disclosure Requirements Amended Version — 2002
          no reference
          (partial)          		 Apr 1981 PD-1.5 Precious Metals and Commodities
          BMA/751/93 8 Jul 1993 PD-1.1, PD-1.3, PD-1.4, PD-3.2 Directors' Interest in the Shares of, and the Unaudited Quarterly Financial Statements of, Locally Incorporated Banks Quoted on the Bahrain Stock Exchange.
          EDBC/782/93 17 Jul 1993 PD-1.1 The Interests of Directors, Chief Executive and Senior Managers in the Shares of Locally Incorporated Banks Quoted on the Bahrain Stock Exchange.
          BC/1/99 22 Feb 1999 PD-2.2 Enhancing Bank Transparency
          OG/73/02 17 Feb 2002 PD-4.2 Duty to Display Current Effective Rate of Interest
          OG/50/92 4 Mar 1992 PD-4.2 Consumer Finance
          OG/107/01 3 Mar 2001 PD-4.3 Disclosure of BD Interest Rates
          OG/425/94 21 Dec 1994 PD-4.4 Deposit Protection
          OG/423/93 28 Nov 1993 PD-4.4 Deposit Protection Scheme (the "Scheme")

      • Effective date

        • PD-A.3.3

          The contents in this module are effective from the date depicted in the original circulars (see Paragraph PD-A.3.2) from which the requirements are compiled.