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  • PD-4 PD-4 Other public disclosure requirements

    • PD-4.1 PD-4.1 Disclosure of current effective rate of interest on consumer loans

      • PD-4.1.1

        The contents of this section are applicable to all FCBs licensed by the Agency.

      • Display of rates by conspicuous notice

        • PD-4.1.2

          The Agency requires all FCBs to display, by a conspicuous notice, their current effective rate of interest on consumer loans. This requirement does not extend to overdrafts or revolving credit facilities such as credit cards.

        • PD-4.1.3

          'Consumer loans' are defined in CM-8.3.2.

        • PD-4.1.4

          'Conspicuous notice' means a written statement in both Arabic and English languages which is easily visible and legible and is displayed in all FCB premises open to the public.

        • PD-4.1.5

          FCBs are given discretion as to how the current effective rate of interest is expressed as a calculation (e.g. as a 'base rate' or as a range of rates) as long as the conspicuous notice provides real and meaningful information to the customer.

      • Advertising of consumer loan facilities

        • PD-4.1.6

          Any advertising of consumer loan facilities offered by the banks should specify only effective rates of interest (including all fees and charges) and not flat rates.

        • PD-4.1.7

          Banks are also asked to take special care to ensure that the content of any advertising material does not mislead or deceive the public in any way.

    • PD-4.2 PD-4.2 Disclosure of base rate of interest on overdrafts and short-term loans

      • PD-4.2.1

        The content of this section is applicable to all FCBs licensed by the Agency.

      • PD-4.2.2

        The Agency requires all FCBs to display, by a conspicuous notice, their base rate of interest on BD overdrafts and short-term revolving facilities to commercial customers. For a definition of 'conspicuous notice', refer to section PD-4.1.

      • PD-4.2.3

        FCBs are left free to decide their own base rate and to make changes to it as they consider appropriate.

      • PD-4.2.4

        FCBs must display a list of current charges including any standard charges and commissions that will be applied by the bank to individual services and transactions. See section BC-4.1 for further details.

    • PD-4.3 PD-4.3 Disclosure relating to Deposit Protection Scheme

      • PD-4.3.1

        The content of this section is applicable to all FCBs licensed by the Agency.

      • PD-4.3.2

        The Agency requires all FCBs referring (directly or indirectly) to the protection of deposits in related marketing materials and in general notices featured within banking halls and in account documentation, including Annual Reports, to prominently disclose the following statement:

        "Subject to the provisions thereof, deposits held with the Bahrain office of [name of the banking firm] are covered by the Deposit Protection Scheme established by the Bahrain Monetary Agency regulation concerning the establishment of a Deposit Protection Scheme and a Deposit Protection Board".

      • PD-4.3.3

        FCBs should, in discussions and/or correspondence with new and prospective customers, bring the Deposit Protection Scheme and the protection afforded by it to the customer's notice.

      • PD-4.3.4

        The Agency welcomes the introduction by the banks, at their discretion, of other appropriate means to promote the Deposit Protection Scheme as prominently as possible.

      • PD-4.3.5

        For detailed guidance on the Deposit Protection Scheme's documentation requirements, see chapter CP-2.