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  • 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)

      • Compliance

        • BR-1.1.5

          In addition to the provisions of section AU-3.7, the audited financial statements or the annual reports of these banks should be in full compliance with the disclosure requirements set out under sections PD-1.3 and PD-1.4.

    • 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 Bahrain branch'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]