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  • CM-5.11 CM-5.11 Limits on Significant Investments

    • CM-5.11.1

      No Bahraini conventional bank licensee may have a significant investment in the capital instruments of a commercial entity where the significant investment amount and any other exposure to the subject entity is more than 15% of the concerned bank's consolidated Total Capital.

      Amended: October 2016

    • CM-5.11.2

      The total amount of a bank's significant investments in unconnected commercial entities may not exceed 60% of the concerned bank's consolidated Total Capital.

      Amended: October 2016

    • CM-5.11.3

      Any excesses above the limits in Paragraphs CM-5.11.1 and CM-5.11.2 must be risk-weighted at 800% according to Paragraph CA-2.4.25.

      Amended: October 2016

    • CM-5.11.4

      For purposes of this Section, 'significant investments' in a commercial entity is defined as any investment in the capital instruments of a commercial entity by a Bahraini Conventional bank licensee which is equivalent to or more than 10% of the issued common share capital of the issuing commercial entity.

      Added: October 2016

    • CM-5.11.5

      This section refers to the treatment of investments in entities which are otherwise not connected to the concerned bank (i.e. the bank's connection to the entity is by way of shareholding or holding of other capital instruments). If a bank is investing in a company where there is a connection by way of mutual directors or mutual parent, or some other relationship that makes the investee a 'related party' as defined by IFRS, then the 'significant investment' must be treated as an exposure to a connected counterparty and the concerned limits and rules for exposures to connected counterparties apply.

      Added: October 2016