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  • Claims Secured by Residential Property

    • CA-3.2.19

      Lending fully secured by first mortgages on residential property that is or will be occupied by the borrower, or that is leased, must carry a risk weighting of 75%.

      January 2015

    • CA-3.2.19A

      The RW for residential property may be reduced to 35% subject to meeting all of the criteria below:

      (a) The residential property is to be utilised for residential purposes only;
      (b) The residential property must be pledged as collateral to the conventional bank licensee;
      (c) There exists a legal infrastructure in the jurisdiction whereby the conventional bank licensee can enforce the repossession and liquidation of the residential property; and
      (d) The conventional bank licensee must obtain a satisfactory legal opinion that foreclosure or repossession as mentioned in (c) above is possible without any impediment.
      Amended: April 2015
      January 2015

    • CA-3.2.19B

      The RW for residential mortgage exposure granted under the Social Housing Schemes of the Kingdom of Bahrain may be reduced to 25% subject to meeting conditions, (a) and (b) in CA-3.2.19A. The reduced risk weight is subject to ensuring the compliance with the requirements for timely recognition of expected credit loss (ECL) as per the Credit Risk Management Module (Module CM).

      Amended: October 2022
      July 2019