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  • 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.