General Requirements for all Conventional Banks
LR-1.4.1
Conventional bank licensees may not hold themselves out as an Islamic bank.Conventional bank licensees are allowed to enter into activities (c) to (e) listed in Rule LR-1.3.1 under the conditions outlined in the remainder of this section, subject to the thresholds and conditions outlined in Section LR-1.2 (concerning facilities offered to Bahrain residents and facilities in Bahrain Dinar in particular).October 2007LR-1.4.2
Shari'a compliant financing facilities provided by
conventional bank licensees are treated as normal risk-weighted assets in the PIR and are not subject to the risk-weighting treatment under Volume 2.October 2007LR-1.4.3
When offering any of the Shari'a compliant activities (c) to (e) listed in Rule LR-1.3.1,
conventional bank licensees must have staff trained in Shari'a compliant banking business. The bank must also disclose in the notes to its Annual Report/Financial Statement all quantitative and qualitative disclosures on its Shari'a compliant business as required by AAOIFI accounting and auditing standards.October 2007LR-1.4.4
Conventional bank licensees may invest in Shari'a compliantfinancial instruments for their own account or make an investment in a Shari'a compliant syndication where the bank's role is limited to provide the funding for such investment and the bank has not participated in the structuring nor the preparation of any documentation in relation to this investment.Amended: January 2016
October 2007
