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  • [ I ]

    • Independent director

      Determination by the Board. Under Module HC an 'independent director' is a director whom the board has specifically determined has no material relationship which could affect his independence of judgment, taking into account all known facts. The board should consider that, although a particular director meets the formal requirements, he may not be independent owing to specific circumstances of the person or the bank, ownership structure of the bank, or for any other reason. The board's determination should be a good faith finding after diligent review and full discussion.

      Formal Requirements. 'Independent director' means a director of the bank who, or whose family shareholders either separately or together with him or each other, does not have any material pecuniary relationships or transactions with the bank (not counting director's remuneration for this purpose) and in particular who, during the one year preceding the time in question met all the following conditions:

      (a) Was not an employee of the company;
      (b) Did not:
      (i) Make to, or receive from, the bank payments of more than 31,000 BD or equivalent (not counting director's remuneration);
      (ii) Own more than a 10% share or other ownership interest, directly or indirectly, in an entity that made to or received from the bank payments of more than such amount;
      (iii) Act as a general partner, manager, director or officer of a partnership or company that made to or received from the bank payments of more than such amount;
      (iv) Have any significant contractual or business relationship with the bank which could be seen to materially interfere with the person's capacity to act in an independent manner,
      (c) Did not own directly or indirectly (including for this purpose ownership by any family member or related person) 5% or more of the shares of any type or class of the bank;
      (d) Was not engaged directly or indirectly as an auditor or professional advisor for the bank;
      (e) Was not an associate of a Director or a member of senior management of the bank; and
      (f) Was not an associate of a Director, member of senior management or board member of the Bank’s controller.

      For purposes of this definition, the 'payments' referred to in paragraph (b)(i), (b)(ii) and (b)(iii) do not include monies received from dividends, deposits, investments and credit facilities arising from the bank's normal business activities, but instead ordinarily refer to monies received (and/or payable during the period in question) for services rendered to the bank by the director or company concerned, or paid (or payable) by the concerned director or company to the bank for services provided by the bank. The CBB may in its absolute discretion vary any such requirement (and/or restrictive effect thereof) in writing on a case-by-case basis.

      Dividends, deposits, investment accounts and credit facilities are to be considered under item (b)(iv) of this definition.

      For the purpose of the definition of "independent director":

      (a) Where the term "family" or "family member or related persons" is used reference is made to: spouse, father, mother, son(s) or daughter(s); and
      (b) Where the term "associate" is used reference is made to:
      (i) Spouse, father, mother, son(s) or daughter(s); or
      (ii) A person who is an employee or partner of the Director or of the firm represented or owned by the Director.
      Amended: October 2020
      Amended: July 2020
      Amended: January 2012
      Amended: October 2011
      Amended: January 2011

    • Independent non-executive director

      [deleted 01/2011]

    • Initial Margin

      A clearing member or client funded collateral posted to the CCP to mitigate the potential future exposure of the CCP to the clearing member, arising from the possible future change in the value of the transactions.

      Added: October 2018

    • Insider trading

      The activity which is in summary:

      (a) The offence of which an individual is guilty if he has information as an insider and:
      (i) In the circumstances described in (b), he deals in securities that are price-affected securities in relation to the information; or
      (ii)  (A) he encourages another person to deal in securities that are (whether or not that other knows it) price affected securities in relation to the information, knowing or having reasonable cause to believe that the dealing would take place in the circumstances mentioned in (b); or (B) he discloses the information, otherwise than in the proper performance of the functions of his employment, office or profession, to another person; and
      (b) The circumstances referred to in (a) are that the acquisition or disposal in question occurs on a regulated market, or that the person dealing relies on a professional intermediary or is himself acting as a professional intermediary.
      Amended: January 2011

    • Insurance licensee

      A person licensed under Volume 3 of the BMA/CBB Rulebook.

    • Interests in real estate property

      Any financial instrument giving right to or interests in real estate property other than owner occupied properties.

      Amended: January 2011

    • Intermediary

      A person who in the course of any business or profession invites other persons to make offers or proposals or to take other steps with a view to entering into contracts of insurance, but not a person who publishes such invitations only on behalf of, or to the order of, some other person.

    • Intra-group outsourcing

      Intra-group outsourcing is an arrangement in which one company within a group of companies provides services for another company within the same group that could also be or usually have been provided in-house.

    • Investigator

      An Investigator is a person appointed by the CBB under the authority of Article 121 of the CBB Law to carry out an investigation of the business of a licensee or listed company.

      Added January 2009

    • Investment(s) (as referred to in Module CM)

      An investment is any holding by a bank of capital instruments issued by a third party that is not a subsidiary of the bank. Therefore holdings of subordinated debt eligible as regulatory capital issued by another financial institution would be regarded as an "investment". In this case "holding" means legal or beneficial ownership of capital instruments.

      Added: January 2011

    • Investment analyst (as referred to in Module BC)

      An employee of a conventional bank licensee who prepares investment research.

      Added: January 2011

    • Investment firm licensee

      A person licensed under Volume 4 of the CBB Rulebook.

      Amended: January 2011

    • Investment fund managers

      A commercial organisation that manages investors' money for a fee.

    • Investment research (as referred to in Module BC)

      A document (other than a recommendation made to an individual customer), distributed outside a conventional bank licensee, which contains one or more of the following:

      (a) The results of research into an individual financial instrument;
      (b) Analysis of factors likely to influence the future performance of an individual financial instrument or its issuer; and
      (c) Advice or recommendations based on those results or that analysis.
      Added: January 2011

    • Investment risk reserve

      Investment risk reserve is the amount appropriated by the Islamic bank out of the income of investment account holders, after allocating the mudarib share, in order to cater against future losses for investment account holders.

    • Islamic bank licensee

      A person licensed under Volume 2 of the BMA/CBB Rulebook.

    • Issued share capital

      Total amount of shares that have been issued.