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  • CM-5.8 CM-5.8 Policy Statements

    • CM-5.8.1

      The CBB requires each Bahraini conventional bank licensee to set out its policy and internal limits on large exposures, including limits for differing types of exposures to individual customers, banks, corporates, countries and economic and market sectors, in a policy statement which must be formally approved by the Board of Directors and then submitted to the CBB. The Policy Statement must be part of the Risk management Policy of the bank. Furthermore, banks must not implement significant changes to these policies without prior discussion with the CBB.

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

    • CM-5.8.2

      The policy statement must identify 'connected counterparties' and the bank's policies towards lending to and investing in these counterparties.

      Amended: July 2011
      October 2007

    • CM-5.8.3

      The bank must explain and justify any requests for exemptions for lending to/investments in connected counterparties.

      Amended: July 2011
      October 2007

    • CM-5.8.4

      Each bank will be expected to justify to the CBB in the policy document its policy on exposures to individual counterparties, including the maximum size of an exposure contemplated.

      Amended: January 2011
      October 2007

    • CM-5.8.5

      Exposures to counterparties connected with the bank will continue to be particularly closely examined.

      October 07

    • CM-5.8.6

      The necessary control systems to give effect to a bank's policy on large exposures must be clearly specified and monitored by its Board.

      Amended: July 2011
      October 2007

    • CM-5.8.7

      Banks are required to implement appropriate internal systems and controls to monitor the size of their Total Capital on a daily basis to ensure that the limits detailed in this Module are not exceeded.

      Amended: January 2015
      October 07