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  • PCD-A.1 PCD-A.1 Purpose

    • Executive Summary

      • PCD-A.1.1

        This Module sets out the regulatory rules for prudential consolidation and pro-rata consolidation for banks where they own controlling or significant minority stakes in regulated financial entities (including qualifying holdings). It also sets out the framework for the prudential deductions from capital for (a) investments in regulated financial entities (below the significance threshold determined for consolidation and pro-rata consolidation), (b) significant investments in insurance entities (c) significant investments in commercial entities and (d) exposures to counterparties exceeding the large exposure limits as set out by the Central Bank of Bahrain ('CBB').

        Amended: January 2011
        Apr 08

      • PCD-A.1.2

        Consolidation and pro-rata consolidation, wherever referred to in this Module, denotes consolidation and pro-rata consolidation rules only for the purposes of computing regulatory minimum capital requirements and as such these do not impact on accounting consolidations and pro-rata consolidation of banks and banking groups, for which there are separate applicable standards and best practices.

        Apr 08

      • PCD-A.1.3

        For prudential purposes, the CBB will supervise banks and banking groups on a consolidated basis, in accordance with consolidation and deduction rules outlined in this Module.

        Amended: January 2011
        Apr 08

      • PCD-A.1.4

        The rules for prudential consolidation and pro-rata consolidation are set out in PCD-1.

        Apr 08

      • PCD-A.1.5

        The rules for prudential deductions from capital are set out in PCD-2. The prudential framework is also applicable to banks on a standalone basis.

        Apr 08

      • PCD-A.1.6

        This Module complements Modules CA and CM, which respectively set minimum capital requirements and large exposure requirements for licensed banks in Bahrain.

        Amended: January 2011
        Apr 08

    • Legal Basis

      • PCD-A.1.7

        This Module contains the CBB's Directive (as amended from time to time) on prudential consolidation and deduction requirements for conventional bank licensees, and is issued under the powers available to the CBB under Article 38 of the Central Bank of Bahrain of Bahrain and Financial Institutions Law 2006 (CBB Law). The directive in this Module is applicable to all conventional bank licensees.

        Adopted: January 2011

      • PCD-A.1.8

        For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1.

        Adopted: January 2011