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  • CM-7 CM-7 Write-off – Credit Facility

    • CM-7.1 CM-7.1 Write-offs

      • CM-7.1.1

        All Bahraini conventional bank licensees must notify the CBB of any write-off of an exposure of an amount in excess of BD 100,000, or its equivalent in foreign currency.

        Amended: October 2016
        Amended: October 2015
        Amended: July 2011
        Amended: January 2011
        October 2007

      • CM-7.1.2

        Such notification should be accompanied by documentary evidence showing, beyond reasonable doubt, that the customer does not possess the resources to fulfil the outstanding obligation.

        October 07

      • CM-7.1.3

        All Bahraini conventional bank licensees must obtain the CBB's written no-objection before writing off any of the following:

        (a) Exposures to or guaranteed by any approved person of the bank or any other CBB licensee;
        (b) [This Subparagraph was deleted in October 2016];
        (c) Exposures to controllers, subsidiaries, associates and SSB members of the bank;
        (d) [This Subparagraph was deleted in October 2015];
        (e) Exposures to any business entity for which the bank or any of its approved persons is a related party such as a board member, a shareholder owning 5% or more, a person assuming a managerial role, a guarantor; and
        (f) Exposures to any controller of another CBB licensee (as defined in Section GR-5.2 — Definition of Controller).
        Amended: October 2016
        Amended: October 2015
        Amended: July 2011
        Amended: January 2011
        April 2008
        October 2007

      • CM-7.1.3A

        All branches of foreign banks must obtain the CBB's written no-objection before writing off the exposures listed in CM-7.1.3 from (a) to (f) except for (c).

        Added: October 2016

      • CM-7.1.4

        All conventional bank licensees must notify the CBB of any applicable exposures outlined in Paragraph CM-7.1.3 that are classified as non-performing loans.

        Amended: October 2016
        Added: October 2015

      • CM-7.1.5

        In order to comply with Subparagraphs CM-7.1.3 (a) and (f), conventional bank licensees should refer to the CBB register on the CBB Website which contains a list of approved persons and controllers of all CBB licensees.

        Amended: October 2016
        Added: October 2015