CM-6 CM-6 Write-off — Credit facility
CM-6.1 CM-6.1 Write-offs
CM-6.1.1
All locally incorporated banks, should notify the Agency of any write-off of a credit facility, (i.e., Murabaha or any other credit facility) of an amount in excess of BD 100,000 (Bahraini Dinars One Hundred Thousand), or its equivalent in foreign currency.
CM-6.1.2
Such notification should be accompanied with documentary evidence showing, beyond reasonable doubt, that the customer does not possess the resources to fulfil the outstanding obligation.
CM-6.1.3
Banks should also obtain the BMA's prior written approval before writing off any of their following claims:
(a) claims on present or former Directors of the bank;(b) claims which are guaranteed by a Director of the bank;(c) claims on any business entity for which the bank or any of its Directors is an agent;(d) claims on any officer or employee of the bank, or any other person who receives remuneration from the bank;(e) claims on any business entity in which the bank (or any of its Directors, officers or other persons receiving remuneration from the bank) has an interest as a shareholder, Director, manager, agent or guarantor; and(f) claims on any person who is a Director, manager or officer of another bank licensed by the Agency.
