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  • CM-4.3 CM-4.3 Provisioning Policies of Overseas Conventional Bank Licensees

    • CM-4.3.1

      The CBB has, for some time, been monitoring the practices adopted by branches of foreign banks in Bahrain with regard to the making and maintaining of provisions against bad and doubtful debts in their books in Bahrain. The CBB is aware that it is the policy of some foreign banks in Bahrain to maintain provisions at their head offices, and not in their books in Bahrain. In the interests of prudence, the CBB has reviewed this matter and issues this Regulation to reflect its requirements in this area.

      Amended: January 2011
      October 2007

    • CM-4.3.2

      Specific provisions for the bad and doubtful debts (as well as any other non-performing assets) of overseas conventional bank licensees must be maintained in the books of the Bahrain branch(es).

      Amended: April 2014
      October 07

    • CM-4.3.3

      If the bank is not able to meet the requirement in Paragraph CM-4.3.2, the bank's head office must advise the CBB, on an annual basis and in writing, of the amount of provisions set aside for the Bahrain branch(es)'s bad debts (and any other non-performing assets).

      Amended: April 2014
      Amended: July 2011
      Amended: January 2011
      October 2007

    • CM-4.3.4

      In addition, the CBB may contact the bank's home supervisor, on a regular or ad hoc basis, in order to obtain information about the adequacy of the provisioning for such assets.

      Amended: April 2014
      Amended: January 2011
      October 2007