CP-1.1 CP-1.1 Constitution of the Board
CP-1.1.1
The contents of this chapter set out the details of the constitution, authority and administration of the Deposit Protection Board (the 'Board').
CP-1.1.2
The Deposit Protection Board (the 'Board') should, subject to and in accordance with the terms and conditions of the regulations in this module, be responsible for:
(a) the administration and implementation of a Deposit Protection Scheme (the 'Scheme');(b) the determination of the amount of compensation which is to be paid out under the Scheme in the event of the liquidation of a relevant bank (as defined in section CP-1.2 below); and(c) the establishment of the rules of operation of the Board.CP-1.1.3
The Board should consist of the following persons, whose period of membership of the Board (other than in the case of the person referred to in paragraph CP 1.1.3(e) below) should be for a three year renewable period:
(a) two representatives of the Agency, who shall be appointed by the Governor of the Agency, one of whom should be Chairman of the Board;(b) four representatives of commercial banking firms in Bahrain, who should be appointed by the Governor of the Agency following consultation with the Bankers' Society of Bahrain;(c) one representative of each of the Ministries of Finance and National Economy, of Justice and Islamic Affairs, and of Commerce, who should be appointed by their Ministers;(d) one representative of the Bahrain Chamber of Commerce and Industry, who should be appointed by the President thereof; and(e) upon a commercial banking firm becoming a relevant bank in accordance with section CP-1.2, and for the purpose of the operation of the Scheme in the case of that relevant bank only, the liquidator of such relevant bank.CP-1.1.4
Upon the appointment of the members of the Board (other than the person referred to in paragraph CP-1.1.3(e) above), the Board shall be formally constituted by a Resolution of the Minister of Finance & National Economy.
