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  • Claims included in the Regulatory Retail Portfolios

    • CA-3.2.16

      No claim on any unrated corporate, where said corporate originates from a foreign jurisdiction, may be given a risk weight lower than that assigned to a corporate within its own jurisdiction, and in no case will it be below 100%.

      January 2015

    • CA-3.2.17

      Claims included in the regulatory retail portfolio must be risk weighted at 75%, except as provided in CA-3.2.23 for past due loans.

      January 2015

    • CA-3.2.18

      To be included in the regulatory retail portfolio, claims must meet the following criteria:

      (a) Orientation — the exposure is to an individual person or persons or to a small business. A small business is a Bahrain-based business with annual turnover below BD 2mn;
      (b) Product — The exposure takes the form of any of the following: revolving credits and lines of credit (including credit cards and overdrafts), personal term loans and leases (e.g. auto leases, student loans) and small business facilities. Securities (such as bonds and equities), whether listed or not, are specifically excluded from this category. Mortgage loans will be excluded if they qualify for treatment as claims secured by residential property (see below). Loans for purchase of shares are also excluded from the regulatory retail portfolios;
      (c) Granularity — The regulatory retail portfolio is sufficiently diversified to a degree that reduces the risks in the portfolio, warranting a 75% risk weight. No aggregate exposure to one counterpart12 can exceed 0.2% of the regulatory retail portfolio; and
      (d) The maximum aggregated retail exposure to one counterpart must not exceed an absolute limit of BD 250,000.

      12 Aggregated exposure means gross amount (i.e. not taking any credit risk mitigation into account) of all forms of debt exposures (e.g. loans or commitments) that individually satisfy the three other criteria. In addition, "to one counterpart" means one or several entities that may be considered as a single beneficiary (e.g. in the case of a small business that is affiliated to another small business, the limit would apply to the bank's aggregated exposure on both businesses).

      January 2015