Reporting Requirements
BR BR BMA Reporting Requirements
BR-A BR-A Introduction
BR-A.1 BR-A.1 Purpose
BR-A.1.1
The purpose of this module is to set out the Agency's reporting requirements applicable to the banks as part of the Agency's ongoing supervision activities.
BR-A.1.2
This module provides support for certain other parts of the Rulebook, mainly:
(a) Principles of Business;(b) Public Disclosure;(c) Credit Risk Management;(d) Operational Risk Management;(e) Financial Crimes;(f)Capital Adequacy ;(g) High Level Controls;(h) Business and Market Conduct;(i) Enforcement; and(j) Audit Firms.BR-A.1.3
Unless otherwise stated, all reports referred to in this module should be addressed to Islamic Financial Institutions Supervision Directorate of the Agency.
BR-A.2 BR-A.2 Key requirements
Regular reporting — Annual requirements
BR-A.2.1
All locally incorporated banks in the Kingdom of Bahrain are required to submit to the Agency their annual reports (in compliance with the provisions set out under section BR-1.1) no later than the end of 3 calendar months from the date of such reports. In addition, these banks are also required to submit supplementary information (as listed under section BR-1.1) to the Agency.
BR-A.2.2
All Bahrain
branches of foreign banks are required to submit to the Agency their annual audited financial statements (in compliance with the provisions set out under section BR-1.2) no later than the end of 3 calendar months from the date of such statements. In addition, these banks are also required to submit supplementary information (as listed under section BR-1.2) to the Agency.Regular reporting — Semi-annual requirements
BR-A.2.3
All FCB Bahrain
branches of foreign banks are required to submit to the Agency their Balance Sheet and Profit and Loss Accounts (in compliance with the provisions set out under section BR-2.1) no later than the end of 8 weeks from the date of such statements.Regular reporting — Quarterly requirements
BR-A.2.4
All locally incorporated banks in the Kingdom of Bahrain are required to submit to the Agency the following information on a quarterly basis:
(a) PIR Forms (in accordance with the provisions set out under section BR-3.1);(b) reviewed (unaudited) quarterly financial statements (in accordance with the provisions set out under section BR-3.1); and(c) largeexposure returns (in accordance with the provisions set out under section BR-3.1).BR-A.2.5
All Bahrain
branches of foreign banks are required to submit to the Agency PIRB Forms (in accordance with the provisions set out under section BR-3.2).BR-A.2.6
All banks licensed by the Agency in the Kingdom of Bahrain are required to submit to the Agency quarterly statistical returns as required under section BR-3.3).
Regular reporting — Monthly requirements
BR-A.2.7
All banks licensed by the Agency in the Kingdom of Bahrain are required to submit to the Agency monthly statistical returns as required under section BR-4.1).
BR-A.2.8
All locally incorporated banks listed on the Bahrain Stock Exchange are required to report to the Capital Markets Supervision Directorate of the Agency, on a monthly basis, information relating to their Directors' interests in the shares of locally incorporated banks listed on the Bahrain Stock Exchange (in accordance with the provisions set out under section BR-3.1).
Ad-hoc reporting and notification
BR-A.2.9
All banks licensed by the Agency in the Kingdom of Bahrain are required to notify and report to the Agency on the following matters:
(a) largeexposures (section BR-5.1);(b) changes in strategy and/or corporate plan (section BR-5.1);(c) changes in management (section BR-5.1);(d) changes in dealing staff (section BR-5.1);(e) appointment of a Compliance Manager/Officer (section BR-5.1);(f)money laundering and suspicious transactions (section BR-5.1);(g) promotion of financial products and services (section BR-5.1); and(h) authorised signatories (section BR-5.1).BR-A.2.10
All locally incorporated banks are required to give the Agency, immediate written notification of any actual breach by such bank of the minimum Risk Asset Ratio(s) (RAR) in accordance with section BR-5.2.
BR-A.3 BR-A.3 Regulation history
BR-A.3.1
This module was first issued in January 2005 as part of the initial launch of the BMA Rulebook Volume for Islamic banks. All regulations in this volume have been effective since this date. All subsequent changes are dated with the month and year at the base of the relevant page and in the Table of Contents. Chapter UG-3 of Module UG provides further details on Rulebook maintenance and control.
BR-A.3.2
The most recent changes made to this module are detailed in the table below:
Summary of changes
Module Ref. Change Date Description of Changes BR-5.1.13 01/04/05 Notification of fraud BR-5.1 01/10/05 New threshold for reporting of transfers by charities and prior approval of the appointment of compliance officer/manager. BR-5.1.3 01/01/06 Addition to changes in strategy and or corporate plan BR-5.1.4 01/01/06 Addition of contact details to management information details BR-3.3, BR-4.1 & BR-5.1.14 01/04/06 Revised statistical returns instructions and new notification requirement for material losses BR-3.2 01/07/06 Deletion of requirement for Form SR6 BR-4.1 01/07/06 Deletion of references to precious metals and commodities returns. Transfer of reserve requirements material from BR-4.2 to BR-4.1. BR-4.2 01/07/06 Deletion of reserve requirements material (moved to BR-4.1). BR-3.1.3 01/07/06 Hard copies of PIRI no longer required BR-4.1.3 01/07/06 Revised submission date for statistical returns BR-5.1.9 01/07/06 Minor changes reflecting change of Compliance Unit to Directorate BR-5.3.3 01/07/06 Deleted since duplicated BR-5.1.15 Evolution of the Module
BR-A.3.3
Prior to the development of the Rulebook, the Agency had issued various circulars representing regulations covering different aspects of BMA reporting structure. These circulars were subsequently compiled into a folder "Part 2: Reports" which was part of the information pack ("The Establishment, regulations and supervision of banks and other financial institutions in Bahrain") issued in 1997. The contents of that information pack have now been incorporated in this module.
BR-A.3.4
In addition, certain circulars have been incorporated in this module that supplement the BMA reporting requirements set out in the information pack mentioned in paragraph BR-A.3.3. These circulars and their evolution into this module are listed below:
Circular Ref. Date of Issue Module Ref. Circular Subject BC/4/99
(partial)17 Mar 1999 BR-1.1, BR-3.1 Annual Accounts for the Year Ending 31 December 1999 BC/12/98 28 Sep 1998 BR-1.1 Accounting and Auditing Standards for Islamic Financial Institutions no reference
(partial)Apr 1981 BR-1.1 Precious Metals and Commodities ODG/329/03 10 Sep 2003 BR-1.1 Corporate Governance Reporting EDBC/1/95 26 Aug 1995 BR-1.2 Re: Provisioning Policies of Branches of Foreign Banks in Bahrain BC/1/99
(partial)22 Feb 1999 BR-2.1 Enhancing Bank Transparency BC/20/99
(partial)28 Sep 1999 BR-3.1 Enhancing Islamic Banks Transparency ER/118/98 2 Feb 1998 BR-3.3, BR-4.1 Revised Statistical Returns ER/247/98 22 Mar 1998 BR-3.3, BR-4.1 Revised Statistical Returns OG/89/88 30 Jun 1988 BR-4.2 Reserve Balances BMA/751/93
(partial)8 Jul 1993 BR-4.3 Directors' Interest in the Shares of, and the Unaudited Quarterly Financial Statements of, Locally Incorporated Banks Quoted on the Bahrain Stock Exchange. BC/904/95
(partial)24 Jul 1995 BR-5.1 Notification to, and approval from the Agency for certain matters BC/309/94 28 Mar 1994 BR-5.1 Management Personnel BMA/1287/94
(partial)6 Nov 1994 BR-5.1 Foreign Exchange, Securities and Other Dealers BC/13/99
(partial)15 Jun 1999 BR-5.1 Compliance, Risk Management and Internal Controls EDBC/6/01
(partial)14 Oct 2001 BR-5.1 Re: Money Laundering Regulation EDBC/73/96
(partial)1 May 1996 BR-5.1 Explanatory note on the promotion of Banking and Financial Products offered in/from Bahrain by Means of Incentives etc. BMA(4)/91/832 22 Oct 1991 BR-5.1 Specimen Signatures OG/45/88 13 Mar 1988 BR-5.2 Write-Off — Credit Facility ODG/145/92 18 Aug 1992 BR-5.3 New or expanded products and facilities in the Retail Banking Field BC/3/00 5 Mar 2000 BR-5.3 Re: Accounts for Charity Organisations BC/09/01 26 Nov 2001 BR-1.1, BR-3.1, BR-5.2 New Prudential Regulations for Islamic Banks BR-1 BR-1 Regular reporting — Annual requirements
BR-1.1 BR-1.1 Locally incorporated banks
BR-1.1.1
The content of this section is applicable to all locally incorporated banks licensed by the Agency in the Kingdom of Bahrain.
Annual reports
BR-1.1.2
All banks, referred to under paragraph BR-1.1.1, are required to submit to the Agency their audited annual reports within 3 calendar months of the date of such reports.
BR-1.1.3
The banks should ensure that the audited accounts reconcile with the following reports submitted to the Agency and that adequate explanations for any material differences between these accounts and reports are provided by the bank's external auditors (also see section AU-3.7):
(a) Prudential Information Returns for Islamic banks, and(b) Monthly Statements of Assets and Liabilities.Supplementary information
BR-1.1.4
In addition to the reports required in paragraph BR-1.1.2, banks are also required to submit to the Agency the following information:
(a) Copies of any report(s) submitted by the external auditors to the Management or Board of Directors including where applicable, the management letter/internal control report;(b) The audited accounts for the bank's ultimate holding company;(c) The audited accounts and management letters for subsidiaries and branches of the bank located outside Bahrain;(d) A list of subsidiaries, associated companies and affiliates of the bank, together with details of their locations and the amount of participation by the bank in these entities;(e) Any other supplementary information required by the Agency; and(f) Report on corporate governance framework attached to year-end PIRI (see Appendix BR 7 for sample report)BR-1.2 BR-1.2 Branches of foreign banks
BR-1.2.1
The content of this section is applicable to
branches (licensed by the Agency) of foreign banks.Annual audited financial statements
BR-1.2.2
All
branches , referred to under paragraph BR-1.2.1, are required to submit to the Agency their annual audited financial statements of their Bahrain operations within 3 calendar months of the date of such statements.Supplementary information
BR-1.2.3
In addition to the statements required in paragraph BR-1.2.2,
branches are also required to submit to the Agency the following information:(a) the external auditors' management letter;(b) a reconciliation statement between the audited financial statements and the relevant prudential returns and monthly statistical returns;(c) the head office's annual audited financial statements; and(d) a statement of provisions as set out in paragraph BR-1.2.4, below.Provisions against branch assets in head office books
BR-1.2.4
If specific provisions against the assets of a
branch are maintained in the books of its head office, the Agency should be advised on an annual basis and in writing (along with the information listed under paragraph BR-1.2.3) of the amount of provisions set aside for the Bahrainbranch's bad debts (and any other non-performing assets). For detailed guidance related to this subject, see section CM-4.3.Compliance
BR-1.2.5
The annual accounts should be in full compliance with the Financial Accounting Standards issued by AAOIFI or where AAOIFI standards do not cover a subject, International Financial Reporting Standards should be used.
BR-1.3 All licensed banks
[This Section deleted 07/2006]
BR-2 BR-2 Regular reporting — Semi-annual requirements
BR-2.1 BR-2.1 FCB branches of foreign banks
BR-2.1.1
The content of this section is applicable only to FCB
branches (licensed by the Agency) of foreign banks.Financial information
BR-2.1.2
Branches (referred to under paragraph BR-2.1.1) are required to submit to the Agency the following information (in the same format as their Annual Audited Accounts) for their Bahrain operation on a semi-annual basis (within eight weeks of the date of these statements):(a) Balance Sheet, and(b) Profit and Loss AccountsBR-3 BR-3 Regular reporting — Quarterly requirements
BR-3.1 BR-3.1 Locally incorporated banks
BR-3.1.1
The content of this section is applicable to all locally incorporated banks licensed by the Agency in the Kingdom of Bahrain.
Prudential Information Returns for Islamic Banks (PIRI)
BR-3.1.2
All banks, referred to under paragraph BR-3.1.1, must complete PIRI forms (see Appendix BR 4), on a quarterly basis. This form is intended to be a financial report of the bank as a separate legal entity. Banks should therefore include on it all assets and liabilities of their head office and their
branches in Bahrain and abroad. Separate figures in respect of the head office or "Bahrain operations" are not required.BR-3.1.3
The forms referred to under paragraph BR-3.1.2 must be submitted electronically online to the Agency on a quarterly basis within 20 calendar days of the end of the reporting date. Effective from 2nd quarter 2006, banks are not required to submit hard copies of the returns.
BR-3.1.4
These forms are divided into five sections. Each reporting section is supplemented with guidelines for completion under Appendix BR 3. Further requirements and guidance relating to the contents of these forms are also set out under various Modules of the Rulebook. Reporting sections and their corresponding requirements and guidance (where applicable) are set out as below:
(a) Section A — Capital Adequacy: see Module CA;(c) Section C — Management of Investment Accounts: see section HC-5.4;(d) Section D — Earnings Quality; and(e) Section E — Liquidity: see section LM-1.BR-3.1.5
The references made in paragraphs BR-3.1.4(a) to (e) should be read in conjunction with the guidelines set under Appendix BR 3 and referred to while completing the PIRI forms set under Appendix BR 4.
Financial information
BR-3.1.6
All banks, referred to under paragraph BR-3.1.1, should submit their reviewed (unaudited) quarterly financial statements to the Agency within 60 days from the statement date.
BR-3.2 BR-3.2 All licensed banks
BR-3.2.1
The content of this section is applicable to all banks (licensed by the Agency) in the Kingdom of Bahrain.
Statistical returns
BR-3.2.2
All banks, referred to under paragraph BR-3.2.1, are required to submit the following quarterly statistical returns to the Financial Stability Directorate of the Agency:
(a) Form SR-3 — 'Quarterly Balance Sheet by Country and Class of Customer';(b) Form SR-4 — 'Quarterly Balance Sheet by Currency';(c) Form SR-5 — 'Quarterly Classification of Loans and Advances to Domestic Non-banks'.(For instructions relating to the completion of the above mentioned returns, refer to Appendix BR 1 and for returns forms refer to Appendix BR 2)
BR-3.2.3
The returns included in Appendix BR 2 should be submitted to the Agency in electronic form (Excel spreadsheet) via email (to erdsr@bma.gov.bh ) no later than the 10th of the month following the end of the relevant quarter. One printed copy should also be delivered to the Financial Stability Directorate by the same date.
BR-4 BR-4 Regular reporting — Monthly requirements
BR-4.1 BR-4.1 All licensed banks
BR-4.1.1
The content of this section is applicable to all banks (or as stated otherwise) licensed by the Agency in the Kingdom of Bahrain.
Statistical returns
BR-4.1.2
All banks, referred to under paragraph BR-4.1.1, are required to submit to the Agency (Financial Stability Directorate) the following monthly statistical returns:
(a) Form SR-1 — 'Monthly Balance Sheet'; and(b) Form SR-2 — 'Monthly Classification ofDeposits and Other Liabilities to Banks and Non-banks'.(For instructions relating to the completion of the above mentioned returns, refer to Appendix BR 1 and for returns forms refer to Appendix BR 2)
BR-4.1.3
The returns included in Appendix BR 2 should be submitted to the Agency in electronic form (Excel spreadsheet) via email to erdsr@bma.gov.bh no later than the 10th of the month following the end of the relevant month. One printed copy should also be delivered to the Financial Stability Directorate by the same date.
Precious metals and commodities returns
BR-4.1.4
[This Paragraph deleted with effect from 1 July 2006].
Reserve requirements
BR-4.1.4a
The Banking Services Directorate will calculate the reserve requirement of each
Islamic bank licensee bank on a monthly basis using the figures reported in the monthly statistical report, Form SR-2 (see Rule BR-4.1.2 above) and will notify each bank of its required reserve (if any).BR-4.1.4b
The monthly reserve requirements will be calculated as 5% of the total of an
Islamic bank licensee's BDdeposits from non-banks and the BD Certificates of Deposit that it has issued to customers.BR-4.2 Full commercial banks
[This section deleted 07/2006]
BR-4.3 BR-4.3 Locally incorporated banks
BR-4.3.1
The content of this section is only applicable to locally incorporated banks.
Directors' interests in the shares of locally incorporated banks listed on the Bahrain Stock Exchange
BR-4.3.2
All locally incorporated banks listed on the Bahrain Stock Exchange are required to report to the Capital Markets Supervision Directorate of the Agency the following information, on a monthly basis, relating to their Directors:
(a) the number and type of interests of each Director in the shares (i.e. whether by shareholding,options etc.) of all such banks in which the respective Directors have interests in and the rights associated with such interests;(b) the date on which, and manner in which, such interests were acquired or disposed of (as the case may be);(c) the acquisition price paid, or disposal price received, for such interests; and(d) the person(s) from, or to, whom the interests in such shares were acquired or disposed (as the case may be).BR-4.3.3
The information required in paragraph BR-4.3.2 above should be submitted to the Agency no later than 15 days following the end of the relevant quarter.
BR-5 BR-5 Ad-hoc reporting and notification
BR-5.1 BR-5.1 All licensed banks
BR-5.1.1
The content of this section is applicable to all banks (licensed by the Agency) in the Kingdom of Bahrain.
Large exposures
BR-5.1.2
Should any bank find that, for reasons outside its control or otherwise, it has an
exposure to an individualcounterparty (other than an exemptexposure ) which results in it exceeding any of the limits set out under Chapter CM-5, this should be reported immediately to the Agency for its consideration, and action should be taken immediately to bring theexposure back within applicable limits as soon as possible.Changes in strategy and/or corporate plan
BR-5.1.3
All banks should notify the Agency, in writing, of all major changes (regardless of type and/or effect), including the establishment of branches, subsidiaries, SPVs and cross-border presences (see HC-1.5 for full text) to strategy or corporate plan prior to implementation.
Current management and changes thereto
BR-5.1.4
All banks should, on a continuous basis, keep the Agency informed, in writing, of the senior management positions held by relevant persons (including General Managers, Deputy General Managers and other senior persons). Such notification should include the following information:
(a) Full Name (and CPR for Bahrain resident management);(b) Contact details including address and emergency phone no;(c) Date of birth;(d) Place of birth (including town etc.);(e) Nationality;(f) Professional qualifications (by educational establishment and dates); and(g) Career details over the last ten years (with your institution or elsewhere).Changes in dealing staff
BR-5.1.7
All banks should notify the Agency of the following events, within 21 days of their occurrence:
(a) the appointment of a dealer, including promotion to Head of a Dealing function. The information provided should include details as set out under section HC-2.1.(b) the resignation, suspension, dismissal or departure from your institution for whatever reason of a dealer (including his/her transfer to other duties within your institution). The information provided should include details as set out under section HC-2.1.Appointment of a Compliance Manager/Officer
BR-5.1.8
All banks must notify the Agency of the appointment of a compliance manager/officer (refer to section HC-3.2), and must submit the appointee's Curriculum Vitae to the Agency. The Agency's approval must be received by the bank before the appointment becomes final. The bank should also outline how the compliance function fits into the bank's senior management reporting structure, and should give details of relevant reporting lines within the bank.
Money laundering and suspicious transactions
BR-5.1.9
The Money Laundering Reporting Officer (or his/her duly authorised delegate) must send a report to the Compliance Directorate of the BMA where he/she knows or has suspicions that a transaction might involve
money laundering or terrorist financing, either due to the customer's economic standing or because it meets one of the examples of suspicious transactions described in Appendix FC 3.Promotion of financial products and services offered in/from Bahrain by mean of incentives etc.
BR-5.1.10
The Agency should be sent copies of documentation relating to promotional schemes at least ten days prior to their launch for information purposes. Refer to chapter BC-1 for more details.
Authorised signatories
BR-5.1.11
In order to maintain an up-to-date record of authorised signatories of respective banks, the Agency requires all banks to submit to it a list of specimen signatures (and changes to it from time to time) of the officials authorised to sign on behalf of the concerned bank.
UN SCR 1373 (2001)
BR-5.1.12
The Agency requires all banks to notify it immediately of any act that might contravene the provisions of UN Security Council Resolution 1373 (2001). Banks should refer to chapter FC-8 for full details of this requirement.
Notification of fraud or other material concerns
BR-5.1.13
All banks must report immediately to the Agency any frauds, either attempted or realised, or any well-founded concerns about the integrity of individual Directors or members of management. This obligation to disclose extends to individual Board members and members of management: i.e. if a Director or member of management has reasonable grounds to believe that information that should have been reported to the Agency has not, then they have a duty to report the matter personally to the Agency. All such cases shall be treated in the strictest confidence by the Agency.
BR-5.1.14
All banks must report immediately to the Agency any material losses as soon as the bank becomes aware of them. This notification requirement is separate from notifications for loan write-offs (see BR-5.2.3) or frauds (see above), but refers to losses caused by external events (e.g. falls in stock markets) or internal control failures. In this context "material" would mean: a loss which exceeds 5% of net earnings in a given quarter; or a loss which reduces the bank's capital adequacy by more than 1%; or a loss which reduces total assets by more than 1%.
Accounts for charity organisations
BR-5.1.15
All banks, referred to under paragraph BR-5.1.1, should notify the Agency of any transfer of funds amounting to BD 3,000 or above (or equivalent in other currencies) from accounts held by the bank for charitable organisations registered in the Kingdom of Bahrain (also see section FC-1.6). Such notification should include details of amount transferred, account name and number, and beneficiary (name and location).
BR-5.2 BR-5.2 Locally incorporated banks
BR-5.2.1
The content of this section is applicable to all locally incorporated banks licensed by the Agency in the Kingdom of Bahrain.
Capital adequacy
BR-5.2.2
All banks, referred to under paragraph BR-5.2.1, must give the Agency immediate written notification of any actual breach by such banks of the minimum Risk Asset Ratio(s) (RAR) in accordance with section CA-2.5. Where such notification is given, the bank must also adhere to the additional notification and reporting requirements as set out under section CA-2.5.
Write-off of credit facility
BR-5.2.3
All banks, referred to under paragraph BR-5.2.1, should notify the Agency of any write-off of a credit facility, (i.e., loan, overdraft and any other credit facility) of an amount in excess of BD 100,000 (Bahraini Dinars One Hundred Thousand), or its equivalent in foreign currency. See section CM-7.1 for further details.
Use of behavioural adjustments to data provided under Section E of PIRI
BR-5.2.4
Banks may in certain circumstances apply to the Agency to use behavioural adjustments (Estimates) to their contractual data provided under Section E of PIRI Forms (also see section AU-3.7). Such application must be supported by data for a minimum period of two years and verified by external auditors.
BR-5.3 BR-5.3 Full commercial banks
BR-5.3.1
The content of this section is only applicable to full commercial banks licensed by the Agency in the Kingdom of Bahrain.
Introduction of new or expanded customer products and facilities
BR-5.3.2
All banks, referred to under paragraph BR-5.3.1, should notify the Agency of information relating to any new or expanded customer products and facilities in accordance with the requirements set out under section BC-4.7.
BR-5.3.3
[This Paragraph deleted July 2006.]
PD PD Public Disclosure Requirements
PD-A PD-A Introduction
PD-A.1 PD-A.1 Purpose
PD-A.1.1
The purpose of this module is to set out the rules and guidelines that banks should adhere to in order to enhance corporate and financial transparency through better public disclosure.
PD-A.1.2
This module provides support for certain other parts of the Rulebook, mainly:
(a) Principles of Business;(b) High Level Controls;(c) Audit Firms;(d) BMA Reporting Requirements;(e)Capital Adequacy ;(f) Business and Market Conduct; and(g) Risk Management (i.e. market, credit, liquidity and operational).PD-A.1.3
This module also provides support for certain aspects relating to disclosure requirements stipulated in the BMA Law (Amiri Decree Law No. 23 of 1973) and the Bahrain Commercial Companies Law of 2001 (as amended).
PD-A.2 PD-A.2 Key requirements
General guidance and best practice
PD-A.2.1
Section PD-B.2 lists the key guidance papers on disclosure as issued by the
Basel Committee on Banking Supervision and International Organization of Securities Commissions. These papers serve as international best practice in financial and other disclosures.Annual audited financial statements (annual reports)
PD-A.2.2
Locally incorporated banks are required to publish their audited financial statements per the rules set out in the BMA Law, Bahrain Commercial Companies Law of 2001 (as amended) and the Bahrain Stock Exchange regulations.
PD-A.2.3
Locally incorporated banks must, in their Annual Reports, provide timely information which facilitates market participants' assessment of them. There are seven broad categories of information (as set out in section PD-1.3 and section PD-1.4), each of which should be addressed in clear terms and with appropriate details to help achieve a satisfactory level of bank transparency.
Annual disclosure in the annual audited financial statements of banks listed on the Bahrain Stock Exchange (BSE)
PD-A.2.4
The Directors' Report attached to the annual financial statements of banks (referred to under section PD-1.4) should contain details of the interests of Directors, chief executive officers and managers (persons as defined under section HC-2.1, respectively) in the shares of such banks. Such details should include:
(a) total interests in the shares of such banks by individual persons mentioned above, and(b) changes in such interests from the previous financial year to the current financial year.Semi-annual disclosure by commercial branches of foreign banks
PD-A.2.5
Banks (referred to under section PD-2.2) are required by the Agency to prepare and disclose to the public the following information (in the same format as their Annual Audited Accounts) for their Bahrain operations on a semi-annual basis:
(a) Balance Sheet, and(b) Profit and Loss AccountsPublication of reviewed (unaudited) quarterly financial statements
PD-A.2.6
Banks should prepare reviewed (unaudited) quarterly financial statements on a quarterly basis in accordance with FAS 1 issued by AAOIFI. Such statements should be in the same form, and should be prepared on the same basis, as is required by FAS 1 for banks' annual published financial statements.
Disclosure of charges
PD-A.2.7
The Agency requires all FCBs to display, by a conspicuous notice, their current effective charges.
Disclosure relating to Deposit Protection Schemes (the 'Scheme')
PD-A.2.8
The Agency requires all FCBs to give prominence to the protection of
deposits afforded under the Deposit Protection Scheme (see chapter CP-2) — for example in related marketing materials and in general notices featured within banking halls and in account documentation, including audited financial statements.Public disclosure via the internet
PD-A.2.9
Non-listed locally incorporated OBUs and IBs may apply to the Agency to disclose their quarterly financial statements via the Internet. If a non-listed locally incorporated OBU or IB wishes to cease disclosure of quarterly financial statements via the local press and use the internet instead, it must satisfy the following criteria:
(a) The bank has no shareholders resident in Bahrain.(b) The bank has no customers resident in Bahrain. Customers include borrowers, depositors, investment account holders or persons from whom the bank earns fees or commissions. "Customers" in this context would not include other banks, but would include Bahraini corporations, the Government of Bahrain and its agencies, and private individuals (whether high net worth or not).(c) The bank does not market itself in any way to residents of Bahrain. In particular, the bank should not market funds or other financial products to residents, even if the bank has no on balance sheet assets or liabilities arising from Bahraini residents.PD-A.3 PD-A.3 Regulation history
PD-A.3.1
This module was first issued in January 2005 as part of the Islamic principles volume. All regulations in this volume have been effective since this date. All subsequent changes are dated with the month and year at the base of the relevant page and in the Table of Contents. Chapter UG-3 of Module UG provides further details on Rulebook maintenance and control.
PD-A.3.2
A list of the most recent changes made to this module are detailed in the table below:
Summary of changes
Module Ref. Change Date Description of Changes PD-2.1.5 & PD-3.1.7 Jan 2006 Revised notification for submission of accounts to the Agency PD-4.3 July 2006 Amendment to disclosure of charges requirements Evolution of the Module
PD-A.3.3
Prior to the development of this Rulebook, the Agency had issued various circulars representing regulations covering different aspects of public disclosure requirements. These circulars have now been consolidated into this module covering regulations relating to public disclosure requirements. These circulars and their evolution into this module are listed below:
Circular Ref. Date of Issue Module Ref. Circular Subject BC/4/99 17 Mar 1999 PD-1.3 Annual Accounts for the Year Ending 31 December 1999 BC/10/97 3 Aug 1997 PD-1.3 Accounting and Auditing Standards for Islamic Financial Institutions no reference
(partial)Apr 1981 PD-1.5 Precious Metals and Commodities BMA/751/93 8 Jul 1993 PD-1.1, PD-1.3, PD-1.4, PD-3.2 Directors' Interest in the Shares of, and the Unaudited Quarterly Financial Statements of, Locally Incorporated Banks Quoted on the Bahrain Stock Exchange. EDBC/782/93 17 Jul 1993 PD-1.1 The Interests of Directors, Chief Executive and Senior Managers in the Shares of Locally Incorporated Banks Quoted on the Bahrain Stock Exchange. BC/1/99 22 Feb 1999 PD-2.2 Enhancing Bank Transparency OG/73/02 17 Feb 2002 PD-4.2 Duty to Display Current Effective Rate of Interest ODG/248/2004 25 Jul 2004 PD-4.2 Consumer Finance BC/20/99 28 Sep 1999 PD-2.2 Enhancing Islamic Banks Transparency OG/107/01 3 Mar 2001 PD-4.3 Disclosure of BD Interest Rates OG/425/94 21 Dec 1994 PD-4.4 Deposit Protection OG/423/93 28 Nov 1993 PD-4.4 Deposit Protection Scheme (the "Scheme") Effective date
PD-A.3.4
The contents in this module are effective from the date depicted in the original circulars (see paragraph PD-A.3.3) from which the requirements complied.
PD-B PD-B General guidance and best practice
PD-B.1 PD-B.1 Guidance provided by international bodies
Basel Committee on Banking Supervision: Various papers
PD-B.1.2
The papers below set best practice standards and are to be taken as guidance by licensees in order to improve public disclosure practices:
• 'Enhancing Bank Transparency' — September 1998 (see www.bis.org/publ/bcbs41.pdf)• 'Sound Practices for Loan Accounting and Disclosure' — July 1999 (see www.bis.org/publ/bcbs55.pdf)• 'Best Practices for Credit Risk Disclosure' — September 2000 (see www.bis.org/publ/bcbs74.pdf)PD-B.1.3
In addition, the
Basel Committee , in conjunction with the International Organization of Securities Commissions (IOSCO) has issued the following papers that relate to the subject matter of this module:• 'Intra-group Transactions and Exposure Principles' — December 1999 (see www.bis.org/publ/bcbs62.pdf)• 'Risk Concentrations Principles' — December 1999 (see www.bis.org/publ/bcbs43.pdf)Basel Committee on Banking Supervision: Various papers [Deleted with Section PD-B.1.1 on April 2016]
PD-B.1.2 [Deleted with Section PD-B.1.1 on April 2016]
The papers below set best practice standards and are to be taken as guidance by licensees in order to improve public disclosure practices:
• 'Enhancing Bank Transparency' — September 1998 (see www.bis.org/publ/bcbs41.pdf)• 'Sound Practices for Loan Accounting and Disclosure' — July 1999 (see www.bis.org/publ/bcbs55.pdf)• 'Best Practices for Credit Risk Disclosure' — September 2000 (see www.bis.org/publ/bcbs74.pdf)• Basel II The Third Pillar — Market Discipline — June 2006.April 2008PD-B.1.3 [Deleted with Section PD-B.1.1 on April 2016]
In addition, the
Basel Committee , in conjunction with the International Organization of Securities Commissions (IOSCO) has issued the following papers that relate to the subject matter of this Module:• 'Recommendations for Public Disclosure of Trading and Derivatives Activities of Banks and Securities Firms' — October 1999 (see www.bis.org/publ/bcbs48.pdf)• 'Intra-group Transactions and Exposure Principles' — December 1999 (see www.bis.org/publ/bcbs62.pdf)• 'Risk Concentrations Principles' — December 1999 (see www.bis.org/publ/bcbs43.pdf)April 2008PD-B.1.4 [Deleted with Section PD-B.1.1 on April 2016]
The Islamic Financial Services Board has issued the following paper which makes recommended disclosures for Islamic banks:
• 'Disclosures to promote transparency and market discipline for institutions offering Islamic financial services — December 2006 (see www.ifsb.org/)April 2008PD-1 PD-1 Annual disclosure requirements
PD-1.1 PD-1.1 Introduction
PD-1.1.1
The purpose of the contents of this chapter is to set out the Agency's requirements relating to the disclosure of information in the bank's annual audited financial statements ('Annual Report'). This chapter also refers to the Bahrain Commercial Companies Law of 2001 (as amended) and the Bahrain Stock Exchange regulations relating to public disclosure and reporting requirements.
PD-1.1.2
For the purpose of this module, the following definitions apply:
(a) 'Director' includes any person who occupies the position of a Director and any person who appears to the Agency to be a Director (howsoever called) of the applicant/licensed locally incorporated banks and its subsidiaries;(b) 'Chief Executive/General Manager' means a person who is responsible under the immediate authority of the Directors for the conduct of the applicant/licensed locally incorporated bank, including its subsidiaries and overseasbranches , and Bahrainbranches of foreign banks;(c) 'Manager' means a person who, under the immediate authority of a Director or the chief executive/general manager, exercises major managerial function(s) or is responsible for maintaining accounts or other records of the applicant/licensed bank; and(d) 'Interest in the shares' shall include, but not be limited to, direct and/or indirect ownership of such shares, the right of voting associated with such shares, the right to receive dividends payable on such shares, and/or any right, regardless of the form thereof, to purchase (or otherwise acquire an interest in) such shares at any time.PD-1.2 PD-1.2 Publication of annual audited financial statements (Annual Reports)
PD-1.2.1
Locally incorporated banks are required to publish their audited financial statements per the rules set out in the BMA law, Bahrain Commercial Companies Law of 2001 (as amended) and the Bahrain Stock Exchange regulations (this latter obligation only applies to banks listed on the Bahrain Stock Exchange).
PD-1.2.2
The audited financial statements should be prepared in accordance with the Financial Accounting Standards (FAS) issued by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). For products and activities not covered by AAOIFI, International Accounting Standards (IAS) should be followed.
PD-1.3 PD-1.3 Disclosure in the annual audited financial statements (Annual Reports)
General
PD-1.3.1
The audited financial statements should be prepared in accordance with the Financial Accounting Standards (FAS) issued by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).
PD-1.3.2
For products and activities not covered by the standards listed in paragraph PD-1.3.1, banks should follow the requirements of the International Accounting Standards (IAS) for preparation of audited financial statements.
Approval by the Board of Directors
PD-1.3.3
The accounts should be approved by the bank's Board of Directors, signed (normally by the Chairman and the Chief Executive Officer) and annotated as follows:
"These accounts were approved by the Board of Directors on [date] and signed on their behalf by [name/title] and [name/title]".
Investment accounts
PD-1.3.4
Restricted investment accounts are to be reported off balance sheet in the financial statements. Banks must provide disclosures as per the requirements of FAS 1: Presentation and Disclosure in the Financial Statements of Islamic Banks and Financial Institutions issued by AAOIFI.
PD-1.3.5
Unrestricted investment accounts are to be reported on balance sheet in the financial statements. The assets financed by the unrestricted investment accounts are to be included under the Assets section on the balance sheet (net of provisions). The equity of the unrestricted investment accounts should be shown between the liabilities and owners' equity sections. Disclosures and presentations must be in accordance with FAS 1 issued by AAOIFI.
Consolidation issues
PD-1.3.6
Where a parent or a group company operating in Bahrain receives funds on an unrestricted basis and these funds are invested with another group company on a restricted basis, these should be eliminated on consolidation. In the consolidated financial statements, investment of the PSIA outside the group should be reported as Unrestricted Investment Accounts. Disclosures and presentation should be in accordance with FAS 1 issued by AAOIFI.
Compliance
PD-1.3.7
The Annual Report should include a declaration by the external auditors that no violations have taken place of:
(a) the Bahrain Commercial Companies Law of 2001 (as amended);(b) the BMA Law that might have had a material effect on the business of the bank or on its financial position; and(c) the licensing and authorisation requirements and other rules and regulations issued by the Agency.In so far as the violations have any material impact on the financial statements of the bank.
PD-1.4 PD-1.4 Additional disclosure in the annual audited financial statements of banks listed on the Bahrain Stock Exchange (BSE)
PD-1.4.1
The content of this section is applicable only to locally incorporated banks listed on the Bahrain Stock Exchange (BSE).
PD-1.4.2
The disclosure requirements set out in this section for banks referred to under paragraph PD-1.4.1 are in addition to those set out in section PD-1.3.
Interests of Directors, chief executive officers and managers
PD-1.4.3
Without prejudice to any other requirement of Bahrain law (or any other direction of the Agency), the Directors' Report section of the annual audited financial statements of banks should contain details of the interests of Directors, chief executive officers and managers (persons as defined under section PD-1.1, respectively) in the shares of such banks. Such details should include:
(a) total interests in the shares of such banks by individual persons mentioned above, and(b) changes in such interests from the previous financial year to the current financial year.PD-1.4.4
For the purpose of the disclosure required under paragraph PD-1.4.3, any interests in the shares of a bank held by the spouse(s) or children of a Director, or any other person the control of whose interests in such shares lies ultimately with the Director, shall be deemed to be the interests of the relevant Director. For a definition of 'interest in the shares', see paragraph PD-1.1.2(d).
PD-1.5 PD-1.5 Disclosure relating to precious metals and commodities trading activities
PD-1.5.1
The content of this section is applicable to all licensed banks authorised to carry out activities related to trading in precious metals and
commodities in accordance with the requirements set out under chapter LR-5.Dealing authorisation
PD-1.5.2
All licensed banks authorized to carry out such dealing activities are required to show in their audited annual financial statements, as a note to or on the face of the balance sheet and profit and loss account, in addition to the disclosure requirements stated in this chapter, accounts detailing assets and liabilities related to precious metals and
commodities and their profit and loss account income attributable to such dealing.PD-2 PD-2 Semi-annual disclosure requirements
PD-2.1 PD-2.1 Disclosure by commercial branches of foreign banks
PD-2.1.1
The content of this section is applicable only to FCB
branches (licensed by the Agency) of foreign banks.PD-2.1.2
Banks (referred to under paragraph PD-2.1.1) are required by the Agency to prepare and disclose to the public the following information (in the same format as their Annual Audited Accounts) for their Bahrain operations on a semi-annual basis:
(a) Balance Sheet, and(b) Profit and Loss Accounts.PD-2.1.3
The statements referred to under paragraph PD-2.1.2 should be reviewed by the bank's external auditors, in accordance with International Standards on Auditing (ISA) applicable to Review engagements.
PD-2.1.4
These statements (referred to under paragraph PD-2.1.2) should be published in one local newspaper within eight weeks from the statements' date.
PD-2.1.5
Banks must submit a newspaper copy of the statements (referred to under paragraph PD-2.1.2) to the Agency within eight weeks from the statements' date. The copy should be accompanied by a letter clearly showing on which date and in which publication(s) the statements were published.
PD-3 PD-3 Quarterly disclosure requirements
PD-3.1 PD-3.1 Reviewed (unaudited) quarterly financial statements
PD-3.1.1
The content of this section is applicable only to locally incorporated banks licensed by the Agency.
PD-3.1.2
All banks referred to under paragraph PD-3.1.1 should prepare and disclose the following information to the public on a quarterly basis:
(a) A Statement of Financial Position (Balance Sheet)(b) An Income Statement(c) A Statement of Cash Flows(d) A Statement of Changes in Restricted Investment Accounts.(e) A Statement of Changes in Owners' Equity.(f) Changes to Accounting Policies.Presentation
PD-3.1.3
The presentation of the above statements should be in accordance with Financial Accounting Standards (FAS) No. 1 issued by the Accounting & Auditing Organization for Islamic Financial Institutions and the statements should be prepared on a consolidated basis.
PD-3.1.4
The statements should include comparative data for income related items to the identical period in, and the year to date for, the bank's previous financial year.
PD-3.1.5
The balance sheet should be compared with the balance sheet in the bank's previous audited annual accounts.
Review by External Auditors
PD-3.1.6
Such statements should be reviewed by banks' external auditors, in accordance with International Standards on Auditing and the Auditing Standards for Islamic Financial Institutions where applicable.
Publication
PD-3.1.7
The statements should be published in one of the local newspapers and a copy submitted to the Agency within eight weeks of the statements' date. The copy should be accompanied by a letter clearly showing on which date and in which publication(s) the statements were published.
Additional requirements
PD-3.1.8
The quarterly statements should include the following items:
(a) (as a minimum) each of the headings and subtotals included in the most recent annual financial statements as presented under FAS 1. Notes should be included if their omission would make the quarterly statement misleading.(b) Basic and diluted earnings per share in the earnings statement.(c) A statement to the effect that the same accounting policies and methods of computation are followed in the quarterly statements as compared with the most recent financial statements or, where these policies or methods have changed, a description of the nature and effect of the change.(d) Explanatory comments concerning the seasonality of the quarterly operations.(e) The nature and amount of any unusual items affecting assets, liabilities, income or cash flows.(f) Information on the nature and amount of changes in estimates of amounts reported in prior quarterly periods of the current financial year, or changes in estimates of amounts reported in prior financial years, if these changes have a material effect in the current quarterly period.(g) Issuances, repurchases, and repayments of securities.(h) Dividends paid (aggregate or per share) for shares.(i) Any material events subsequent to the end of the quarterly period that have not been reflected in the Financial Statements for the quarterly period should be outlined.(j) The effect of changes in the composition of the bank during the quarterly period, including business combinations, acquisitions or disposal of subsidiaries and long-term investments, restructurings and discontinuing operations should be stated.(k) Changes to contingent liabilities and contingent assets since the last annual balance sheet should be disclosed.PD-4 PD-4 Other public disclosure requirements
PD-4.1 PD-4.1 Introduction
PD-4.2 PD-4.2 Disclosure of key terms relating to a consumer finance agreement
PD-4.2.1
The content of this section is applicable to all FCBs licensed by the Agency.
PD-4.3 PD-4.3 Disclosure of charges on short-term financing facilities
PD-4.3.1
The content of this section is applicable to all FCBs licensed by the Agency.
PD-4.3.2
The Agency requires all FCBs to display, by a conspicuous notice, their scale of charges on BD short-term revolving facilities to commercial customers.
PD-4.3.3
'Conspicuous notice' means a written statement in both Arabic and English languages which is easily visible and legible and is displayed in all FCB premises open to the public.
PD-4.3.4
FCBs are left free to decide their own basis of charging and to make changes to it as they consider appropriate.
PD-4.3.5
FCBs must display a list of current charges including any standard charges and commissions that will be applied by the bank to individual services and transactions. See section BC-4.2 for further details.
PD-4.4 PD-4.4 Disclosure relating to Deposit Protection Scheme
PD-4.4.1
The content of this section is applicable to all FCBs licensed by the Agency.
PD-4.4.2
The Agency requires all FCBs referring (directly or indirectly) to the protection of
deposits in related marketing materials and in general notices featured within banking halls and in account documentation, including Annual Reports, to prominently disclose the following statement:"Subject to the provisions thereof,
deposits held with the Bahrain office of [name of the banking firm] are covered by the Deposit Protection Scheme established by the Bahrain Monetary Agency regulation concerning the establishment of a Deposit Protection Scheme and a Deposit Protection Board".PD-4.4.3
FCBs should, in discussions and/or correspondence with new and prospective customers, bring the Deposit Protection Scheme and the protection afforded by it to the customer's notice.
PD-4.4.4
The Agency welcomes the introduction by the banks, at their discretion, of other appropriate means to promote the Deposit Protection Scheme as prominently as possible.
PD-4.4.5
For detailed guidance on the Deposit Protection Scheme's documentation requirements, see chapter CP-2.
PD-5 PD-5 Public Disclosure via the Internet
PD-5.1 PD-5.1 Publication and disclosure of financial results
Existing requirements
PD-5.1.1
All locally incorporated banks are required to disclose their quarterly financial statements to the public within eight weeks of the end of each quarter. Disclosure to the public should be by way of an announcement in the local press of the balance sheet and profit and loss account (with certain other additional disclosures as outlined in chapters PD-1 to PD-4).
Criteria for application for disclosure via the internet
PD-5.1.2
Non-listed locally incorporated banks may apply to the Agency to disclose their quarterly financial statements via the internet. If a bank wishes to cease disclosure of quarterly financial statements via the local press, it must satisfy the following criteria:
(a) The bank has no shareholders resident in Bahrain.(b) The bank has no customers resident in Bahrain. Customers include borrowers, depositors, investment account holders or persons from whom the bank earns fees or commissions. "Customers" in this context would not include other banks, but would include Bahraini corporations, the Government of Bahrain and its agencies, and private individuals (whether high net worth or not).(c) The bank does not market itself in any way to residents of Bahrain. In particular, the bank should not market funds or other financial products to residents, even if the bank has no on balance sheet assets or liabilities arising from Bahraini residents.PD-5.1.3
Banks meeting all of the above criteria, may apply to the Agency to disclose their quarterly financial statements by way of their website instead of by way of the local press.
PD PD Public Disclosure Requirements [October 2007]
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-A PD-A Introduction
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-A.1 PD-A.1 Purpose
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-A.1.1
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The purpose of this Module is to set out the rules and guidelines that banks should adhere to in order to enhance corporate and financial transparency through better public disclosure.
October 07PD-A.1.2
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
This Module provides support for certain other parts of the Rulebook, mainly:
(a) Principles of Business (Module PB);(b) High-level Controls (Module HC);(c) Audit Firms (Module AU);(d) CBB Reporting Requirements (Module BR);(e)Capital Adequacy (Module CA) ;(f) Business and Market Conduct (Module BC); and(g) Risk Management (i.e. market, credit, liquidity and operational) (Module OM).October 07PD-A.1.3
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
This Module also provides support for certain aspects relating to disclosure requirements stipulated in the Decree No. 64 of 2006 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law') and the Bahrain Commercial Companies Law of 2001 (as amended).
October 07Legal Basis
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-A.1.4
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
This Module contains the CBB's Directive relating to public disclosure and is issued under the powers available to the CBB under Article 38 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'). The Directive in this Module is applicable to all
Islamic bank licensees .October 07PD-A.2 PD-A.2 Key requirements
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
General guidance and best practice
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-A.2.1
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
Section PD-B.2 lists the key guidance papers on disclosure as issued by the
Basel Committee on Banking Supervision and International Organisation of Securities Commissions. These papers serve as international best practice in financial and other disclosures.October 07Annual audited financial statements (annual reports)
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-A.2.2
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
Locally incorporated banks are required to publish their audited financial statements per the rules set out in the CBB Law, Bahrain Commercial Companies Law of 2001 (as amended) and the Bahrain Stock Exchange regulations.
October 07PD-A.2.3
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
Locally incorporated banks must, in their Annual Reports, provide timely information which facilitates market participants' assessment of them. There are seven broad categories of information (as set out in Section PD-1.3 and Section PD-1.4), each of which should be addressed in clear terms and with appropriate details to help achieve a satisfactory level of bank transparency.
October 07Annual disclosure in the annual audited financial statements of banks listed on the Bahrain Stock Exchange (BSE)
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-A.2.4
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The Directors' Report attached to the annual financial statements of banks (referred to under Section PD-1.4) should contain details of the interests of Directors, chief executive officers and managers (persons as defined under Section HC-2.1, respectively) in the shares of such banks. Such details should include:
(a) Total interests in the shares of such banks by individual persons mentioned above, and(b) Changes in such interests from the previous financial year to the current financial year.October 07Semi-annual disclosure by commercial branches of foreign banks
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-A.2.5
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
Banks (referred to under Section PD-2.2) are required by the Central Bank to prepare and disclose to the public the following information (in the same format as their Annual Audited Accounts) for their Bahrain operations on a semi-annual basis:
(a) Balance Sheet, and(b) Profit and Loss AccountsOctober 07Publication of reviewed (unaudited) quarterly financial statements
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-A.2.6
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
Banks should prepare reviewed (unaudited) quarterly financial statements on a quarterly basis in accordance with FAS 1 issued by AAOIFI. Such statements should be in the same form, and should be prepared on the same basis, as is required by FAS 1 for banks' annual published financial statements.
October 07Disclosure of charges
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-A.2.7
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The Central Bank requires all retail banks to display, by a conspicuous notice, their current effective charges.
October 07Disclosure relating to Deposit Protection Schemes (the "Scheme")
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-A.2.8
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The Central Bank requires all retail banks to give prominence to the protection of
deposits afforded under the Deposit Protection Scheme (see Chapter CP-2) - for example in related marketing materials and in general notices featured within banking halls and in account documentation, including audited financial statements.October 07Public disclosure via the internet
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-A.2.9
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
Non-listed locally incorporated OBUs and IBs may apply to the Central Bank to disclose their quarterly financial statements via the Internet. If a non-listed locally incorporated OBU or IB wishes to cease disclosure of quarterly financial statements via the local press and use the internet instead, it must satisfy the following criteria:
(a) The bank has no shareholders resident in Bahrain.(b) The bank has no customers resident in Bahrain. Customers include borrowers, depositors, investment account holders or persons from whom the bank earns fees or commissions. 'Customers' in this context would not include other banks, but would include Bahraini corporations, the Government of Bahrain and its agencies, and private individuals (whether high net worth or not).(c) The bank does not market itself in any way to residents of Bahrain. In particular, the bank should not market funds or other financial products to residents, even if the bank has no on balance sheet assets or liabilities arising from Bahraini residents.October 07PD-A.3 PD-A.3 Module History
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-A.3.1
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
This Module was first issued in January 2005 by the BMA as part of the Islamic principles volume. All regulations in this volume have been effective since this date. Any material changes that have subsequently been made to this Module are annotated with the calendar quarter date in which the change was made: Chapter UG-3 provides further details on Rulebook maintenance and version control.
October 07PD-A.3.2
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
When the CBB replaced the BMA in September 2006, the provisions of this Module remained in force. Volume 2 was updated in October 2007 to reflect the switch to the CBB; however, new calendar quarter dates were only issued where the update necessitated changes to actual requirements.
October 07PD-A.3.3
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
A list of the most recent changes made to this Module are detailed in the table below:
Summary of changes
Module Ref. Change Date Description of Changes PD-2.1.5 & 3.1.7 Jan 2006 Revised notification for submission of accounts to the Central Bank. PD-4.3 July 2006 Amendment to disclosure of charges requirements. PD-A.1.4 10/2007 New Rule PD-A.1.4 introduced categorising this Module as a Directive. PD-1.3 10/2007 New Rule PD-1.3.8 requiring disclosure of penalties paid October 07Evolution of the Module
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-A.3.4
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
Prior to the development of this Rulebook, the Central Bank had issued various circulars representing regulations covering different aspects of public disclosure requirements. These circulars have now been consolidated into this Module covering regulations relating to public disclosure requirements. These circulars and their evolution into this Module are listed below:
Circular Ref. Date of Issue Module Ref. Circular Subject BC/4/99 17 Mar 1999 PD-1.3 Annual Accounts for the Year Ending 31 December 1999. BC/10/97 3 Aug 1997 PD-1.3 Accounting and Auditing Standards for Islamic Financial Institutions. no reference (partial) Apr 1981 PD-1.5 Precious Metals and Commodities. CBB/751/93 8 Jul 1993 PD-1.1, PD-1.3, PD-1.4, PD-3.2 Directors' Interest in the Shares of, and the Unaudited Quarterly Financial Statements of, Locally Incorporated Banks Quoted on the Bahrain Stock Exchange. EDBC/782/93 17 Jul 1993 PD-1.1 The Interests of Directors, Chief Executive and Senior Managers in the Shares of Locally Incorporated Banks Quoted on the Bahrain Stock Exchange. BC/1/99 22 Feb 1999 PD-2.2 Enhancing Bank Transparency. OG/73/02 17 Feb 2002 PD-4.2 Duty to Display Current Effective Rate of Interest. ODG/248/2004 25 Jul 2004 PD-4.2 Consumer Finance. BC/20/99 28 Sep 1999 PD-2.2 Enhancing Islamic Banks Transparency. OG/107/01 3 Mar 2001 PD 4.3 Disclosure of BD Interest Rates OG/425/94 21 Dec 1994 PD 4.4 Deposit Protection OG/423/93 28 Nov 1993 PD 4.4 Deposit Protection Scheme (the 'Scheme') October 07Effective date
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-A.3.5
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The contents in this Module are effective from the date depicted in the original circulars (see Paragraph PD-A-3.3) from which the requirements are compiled.
October 07PD-B PD-B General guidance and best practice
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-B.1 PD-B.1 Guidance provided by international bodies
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-B.1.1
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
This Chapter provides general guidance on public disclosure requirements.
October 07Basel Committee on Banking Supervision: Various papers
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-B.1.2
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The papers below set best practice standards and are to be taken as guidance by licensees in order to improve public disclosure practices:
• 'Enhancing Bank Transparency' – September 1998 (seewww.bis.org/publ/bcbs41.pdf )• 'Sound Practices for Loan Accounting and Disclosure' – July 1999 (seewww.bis.org/publ/bcbs55.pdf )• 'Best Practices for Credit Risk Disclosure' – September 2000 (seewww.bis.org/publ/bcbs74.pdf )October 07PD-B.1.3
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
In addition, the
Basel Committee , in conjunction with the International Organisation of Securities Commissions (IOSCO) has issued the following papers that relate to the subject matter of this Module:• 'Intra-group Transactions and Exposure Principles' – December 1999 (seewww.bis.org/publ/bcbs62.pdf )• 'Risk Concentrations Principles' – December 1999 (seewww.bis.org/publ/bcbs43.pdf )October 07PD-1 PD-1 Annual disclosure requirements
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-1.1 PD-1.1 Introduction
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-1.1.1
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The purpose of the contents of this Chapter is to set out the Central Bank's requirements relating to the disclosure of information in the bank's annual audited financial statements ('Annual Report'). This Chapter also refers to the Bahrain Commercial Companies Law of 2001 (as amended) and the Bahrain Stock Exchange regulations relating to public disclosure and reporting requirements.
October 07PD-1.1.2
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
For the purpose of this Module, the following definitions apply:
(a) 'Director' includes any person who occupies the position of a Director and any person who appears to the Central Bank to be a Director (howsoever called) of the applicant/licensed locally incorporated banks and its subsidiaries;(b) 'Chief Executive/General Manager' means a person who is responsible under the immediate authority of the Directors for the conduct of the applicant/licensed locally incorporated bank, including its subsidiaries and overseasbranches , and Bahrainbranches of foreign banks;(c) 'Manager' means a person who, under the immediate authority of a Director or the chief executive/general manager, exercises major managerial function(s) or is responsible for maintaining accounts or other records of the applicant/licensed bank; and(d) 'Interest in the shares' shall include, but not be limited to, direct and/or indirect ownership of such shares, the right of voting associated with such shares, the right to receive dividends payable on such shares, and/or any right, regardless of the form thereof, to purchase (or otherwise acquire an interest in) such shares at any time.October 07PD-1.2 PD-1.2 Publication of annual audited financial statements (Annual Reports)
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-1.2.1
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
Locally incorporated banks are required to publish their audited financial statements per the rules set out in the CBB law, Bahrain Commercial Companies Law of 2001 (as amended) and the Bahrain Stock Exchange regulations (this latter obligation only applies to banks listed on the Bahrain Stock Exchange).
October 07PD-1.2.2
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The audited financial statements should be prepared in accordance with the Financial Accounting Standards (FAS) issued by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). For products and activities not covered by AAOIFI, International Accounting Standards (IAS) should be followed.
October 07PD-1.3 PD-1.3 Disclosure in the annual audited financial statements (Annual Reports)
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
General
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-1.3.1
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The audited financial statements should be prepared in accordance with the Financial Accounting Standards (FAS) issued by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).
October 07PD-1.3.2
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
For products and activities not covered by the standards listed in Paragraph PD 1.3.1, banks should follow the requirements of the International Accounting Standards (IAS) for preparation of audited financial statements.
October 07Approval by the Board of Directors
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-1.3.3
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The accounts should be approved by the bank's Board of Directors, signed (normally by the Chairman and the Chief Executive Officer) and annotated as follows:
'These accounts were approved by the Board of Directors on [date] and signed on their behalf by [name/title] and [name/title]'.
October 07Investment accounts
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-1.3.4
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
Restricted investment accounts are to be reported off-balance sheet in the financial statements. Banks must provide disclosures as per the requirements of FAS 1: Presentation and Disclosure in the Financial Statements of Islamic Banks and Financial Institutions issued by AAOIFI.
October 07PD-1.3.5
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
Unrestricted investment accounts are to be reported on-balance sheet in the financial statements. The assets financed by the unrestricted investment accounts are to be included under the Assets Section on the balance sheet (net of provisions). The equity of the unrestricted investment accounts should be shown between the liabilities and owners' equity Sections. Disclosures and presentations must be in accordance with FAS 1 issued by AAOIFI.
October 07Consolidation issues
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-1.3.6
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
Where a parent or a group company operating in Bahrain receives funds on an unrestricted basis and these funds are invested with another group company on a restricted basis, these should be eliminated on consolidation. In the consolidated financial statements, investment of the PSIA outside the group should be reported as Unrestricted Investment Accounts. Disclosures and presentation should be in accordance with FAS 1 issued by AAOIFI.
October 07Compliance
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-1.3.7
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The Annual Report should include a declaration by the external auditors that no violations have taken place of:
(a) The Bahrain Commercial Companies Law of 2001 (as amended);(b) The CBB Law that might have had a material effect on the business of the bank or on its financial position; and(c) The licensing and authorisation requirements and other rules and regulations issued by the Central Bank.In so far as the violations have any material impact on the financial statements of the bank.
October 07PD-1.3.8
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The Annual Report must disclose the amount of any penalties paid to the Central Bank during the period of the report together with a factual description of the reason(s) given by the Central Bank for the penalty (see Section EN-1.3). Failure to comply with this requirement will mean that the concerned bank will be required to make the disclosure in the subsequent quarterly financial statement and in the subsequent annual financial statement. A financial penalty for non-disclosure will also be levied upon the concerned bank.
October 07PD-1.4 PD-1.4 Additional disclosure in the annual audited financial statements of banks listed on the Bahrain Stock Exchange (BSE)
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-1.4.1
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The content of this Section is applicable only to locally incorporated banks listed on the Bahrain Stock Exchange (BSE).
October 07PD-1.4.2
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The disclosure requirements set out in this Section for banks referred to under Paragraph PD-1.4.1 are in addition to those set out in Section PD-1.3.
October 07Interests of Directors, chief executive officers and managers
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-1.4.3
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
Without prejudice to any other requirement of Bahrain law (or any other direction of the Central Bank), the Directors' Report Section of the annual audited financial statements of banks should contain details of the interests of Directors, chief executive officers and managers (persons as defined under Section PD-1.1, respectively) in the shares of such banks. Such details should include:
(a) Total interests in the shares of such banks by individual persons mentioned above, and(b) Changes in such interests from the previous financial year to the current financial year.October 07PD-1.4.4
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
For the purpose of the disclosure required under Paragraph PD-1.4.3, any interests in the shares of a bank held by the spouse(s) or children of a Director, or any other person the control of whose interests in such shares lies ultimately with the Director, shall be deemed to be the interests of the relevant Director. For a definition of 'interest in the shares', see Paragraph PD-1.1.2(d).
October 07PD-1.5 PD-1.5 Disclosure relating to precious metals and commodities trading activities
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-1.5.1
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The content of this Section is applicable to all licensed banks authorised to carry out activities related to trading in precious metals and
commodities in accordance with the requirements set out under Chapter LR-5.October 07Dealing authorisation
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-1.5.2
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
All licensed banks authorized to carry out such dealing activities are required to show in their audited annual financial statements, as a note to or on the face of the balance sheet and profit and loss account, in addition to the disclosure requirements stated in this Chapter, accounts detailing assets and liabilities related to precious metals and
commodities and their profit and loss account income attributable to such dealing.October 07PD-2 PD-2 Semi-annual disclosure requirements
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-2.1 PD-2.1 Disclosure by commercial branches of foreign banks
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-2.1.1
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The content of this Section is applicable only to retail bank
branches (licensed by the Central Bank) of foreign banks.October 07PD-2.1.2
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
Banks (referred to under Paragraph PD-2.1.1) are required by the Central Bank to prepare and disclose to the public the following information (in the same format as their Annual Audited Accounts) for their Bahrain operations on a semi-annual basis:
(a) Balance Sheet, and(b) Profit and Loss Accounts.October 07PD-2.1.3
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The statements referred to under Paragraph PD-2.1.2 should be reviewed by the bank's external auditors, in accordance with International Standards on Auditing (ISA) applicable to Review engagements.
October 07PD-2.1.4
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
These statements (referred to under Paragraph PD-2.1.2) should be published in one local newspaper within eight weeks from the statements' date.
October 07PD-2.1.5
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
Banks must submit a newspaper copy of the statements (referred to under Paragraph PD-2.1.2) to the Central Bank within eight weeks from the statements' date. The copy should be accompanied by a letter clearly showing on which date and in which publication(s) the statements were published.
October 07PD-3 PD-3 Quarterly disclosure requirements
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-3.1 PD-3.1 Reviewed (unaudited) quarterly financial statements
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-3.1.1
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The content of this Section is applicable only to locally incorporated banks licensed by the Central Bank.
October 07PD-3.1.2
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
All banks referred to under Paragraph PD-3.1.1 should prepare and disclose the following information to the public on a quarterly basis:
(a) A Statement of Financial Position (Balance Sheet)(b) An Income Statement(c) A Statement of Cash Flows(d) A Statement of Changes in Restricted Investment Accounts.(e) A Statement of Changes in Owners' Equity.(f) Changes to Accounting Policies.October 07Presentation
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-3.1.3
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The presentation of the above statements should be in accordance with Financial Accounting Standards (FAS) No. 1 issued by the Accounting & Auditing Organisation for Islamic Financial Institutions and the statements should be prepared on a consolidated basis.
October 07PD-3.1.4
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The statements should include comparative data for income related items to the identical period in, and the year to date for, the bank's previous financial year.
October 07PD-3.1.5
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The balance sheet should be compared with the balance sheet in the bank's previous audited annual accounts.
October 07Review by External Auditors
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-3.1.6
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
Such statements should be reviewed by banks' external auditors, in accordance with International Standards on Auditing and the Auditing Standards for Islamic Financial Institutions where applicable.
October 07Publication
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-3.1.7
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The statements should be published in one of the local newspapers and a copy submitted to the Central Bank within eight weeks of the statements' date. The copy should be accompanied by a letter clearly showing on which date and in which publication(s) the statements were published.
October 07Additional requirements
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-3.1.8
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The quarterly statements should include the following items:
(a) (As a minimum) each of the headings and subtotals included in the most recent annual financial statements as presented under FAS 1. Notes should be included if their omission would make the quarterly statement misleading.(b) Basic and diluted earnings per share in the earnings statement.(c) A statement to the effect that the same accounting policies and methods of computation are followed in the quarterly statements as compared with the most recent financial statements or, where these policies or methods have changed, a description of the nature and effect of the change.(d) Explanatory comments concerning the seasonality of the quarterly operations.(e) The nature and amount of any unusual items affecting assets, liabilities, income or cash flows.(f) Information on the nature and amount of changes in estimates of amounts reported in prior quarterly periods of the current financial year, or changes in estimates of amounts reported in prior financial years, if these changes have a material effect in the current quarterly period.(g) Issuances, repurchases, and repayments of securities.(h) Dividends paid (aggregate or per share) for shares.(i) Any material events subsequent to the end of the quarterly period that have not been reflected in the Financial Statements for the quarterly period should be outlined.(j) The effect of changes in the composition of the bank during the quarterly period, including business combinations, acquisitions or disposal of subsidiaries and long-term investments, restructurings and discontinuing operations should be stated.(k) Changes to contingent liabilities and contingent assets since the last annual balance sheet should be disclosed.October 07PD-4 PD-4 Other public disclosure requirements
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-4.1 PD-4.1 Introduction
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-4.1.1
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The purpose of the contents of this Chapter is to set out the Central Bank's requirements relating to other public disclosure of information by the banks, not covered in Chapters PD-1 to PD-3.
October 07PD-4.2 PD-4.2 Disclosure of key terms relating to a consumer finance agreement
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-4.2.1
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The content of this Section is applicable to all retail banks licensed by the Central Bank.
October 07PD-4.3 PD-4.3 Disclosure of charges on short-term financing facilities
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-4.3.1
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The content of this Section is applicable to all retail banks licensed by the Central Bank.
October 07PD-4.3.2
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The Central Bank requires all retail banks to display, by a conspicuous notice, their scale of charges on BD short-term revolving facilities to commercial customers.
October 07PD-4.3.3
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
'Conspicuous notice' means a written statement in both Arabic and English languages which is easily visible and legible and is displayed in all retail banks' premises open to the public.
October 07PD-4.3.4
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
Retail banks are left free to decide their own basis of charging and to make changes to it as they consider appropriate.
October 07PD-4.3.5
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
Retail banks must display a list of current charges including any standard charges and commissions that will be applied by the bank to individual services and transactions. See Section BC 4.2 for further details.
October 07PD-4.4 PD-4.4 Disclosure relating to Deposit Protection Scheme
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-4.4.1
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The content of this Section is applicable to all retail banks licensed by the Central Bank.
October 07PD-4.4.2
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The Central Bank requires all retail banks referring (directly or indirectly) to the protection of
deposits in related marketing materials and in general notices featured within banking halls and in account documentation, including Annual Reports, to prominently disclose the following statement:• 'Subject to the provisions thereof,deposits held with the Bahrain office of [name of the banking firm] are covered by the Deposit Protection Scheme established by the Central Bank of Bahrain regulation concerning the establishment of a Deposit Protection Scheme and a Deposit Protection Board'.October 07PD-4.4.3
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
Retail banks should, in discussions and/or correspondence with new and prospective customers, bring the Deposit Protection Scheme and the protection afforded by it to the customer's notice.
October 07PD-4.4.4
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
The Central Bank welcomes the introduction by the banks, at their discretion, of other appropriate means to promote the Deposit Protection Scheme as prominently as possible.
October 07PD-5 PD-5 Public Disclosure via the Internet
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-5.1 PD-5.1 Publication and disclosure of financial results
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
Existing requirements
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-5.1.1
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
All locally incorporated banks are required to disclose their quarterly financial statements to the public within eight weeks of the end of each quarter. Disclosure to the public should be by way of an announcement in the local press of the balance sheet and profit and loss account (with certain other additional disclosures as outlined in Chapters PD-1 to PD-3).
October 07Criteria for application for disclosure via the internet
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
PD-5.1.2
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
Non-listed locally incorporated banks may apply to the Central Bank to disclose their quarterly financial statements via the internet. If a bank wishes to cease disclosure of quarterly financial statements via the local press, it must satisfy the following criteria:
(a) The bank has no shareholders resident in Bahrain.(b) The bank has no customers resident in Bahrain. Customers include borrowers, depositors, investment account holders or persons from whom the bank earns fees or commissions. 'Customers' in this context would not include other banks, but would include Bahraini corporations, the Government of Bahrain and its agencies, and private individuals (whether high net worth or not).(c) The bank does not market itself in any way to residents of Bahrain. In particular, the bank should not market funds or other financial products to residents, even if the bank has no on balance sheet assets or liabilities arising from Bahraini residents.October 07PD-5.1.3
This version of Module PD was replaced in April 2008. Click here for the current Module PD.
Banks meeting all of the above criteria, may apply to the Central Bank to disclose their quarterly financial statements by way of their website instead of by way of the local press.
October 07