CM-4.7 CM-4.7 Policy statements
CM-4.7.1
The Agency requires each bank incorporated in Bahrain to set out its policy and internal limits on large exposures, including exposures to individual customers, banks, institutions, countries and economic sectors, in a policy statement which should be formally adopted by the Board of Directors. The policy statement should be part of the risk management policy of the bank. The Agency expects banks not to implement significant changes in these policies without prior discussion with the Agency.
CM-4.7.2
Each bank should discuss their policy statement with the Agency. Each bank will be expected to justify to the Agency its policy on exposures to individual counterparties, including the maximum size of an exposure contemplated.
CM-4.7.3
Exposures to counterparties connected with the bank will continue to be particularly closely examined.
CM-4.7.4
The necessary control systems to give effect to a bank's policy on large exposures should be clearly specified and monitored by its Board.
