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  • [ O ]

    • Offering Shari'a Financing Contracts

      Entering into, or making arrangement for another person to enter into, a contract to provide finance in accordance with Shari'a principles, such as murabaha, bay muajjal, bay salam, ijara wa iktina and istisna'a contracts.

    • Off-balance Sheet ('OBS') Activities

      A banks' business that does not generally involve booking assets or liabilities. Examples include the granting of standby commitments, letters of credit and guarantees.

      Added: October 2018

    • Off-site ATM

      Automated Teller Machine. An unattended electronic machine in a public place (other than the premises of the owning bank), connected to a data system and related equipment and activated by a bank customer to obtain cash withdrawals and other banking services.

    • Operational Deposits

      The deposits generated by clearing, custody and cash management activities.

      Added: October 2018

    • Operational risk

      The risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. This definition includes legal risk1 and Shari'a Compliance risk, but excludes strategic and reputational risk.

      1 Legal risk includes, but is not limited to, exposure to fines, penalties, or punitive damages resulting from supervisory actions, as well as private settlements.

      Added: January 2015

    • Operating a Shari'a compliant collective investment undertaking

      Operating a Shari'a compliant collective investment undertaking means operating, establishing or winding up a Shari'a compliant CIU.

    • Operating Ijarah (see Ijarah)

      Ijarah contracts that do not end up with the transfer of ownership of leased assets to the lessee.

    • Option(s)

      An option is a contract giving the buyer the right, but not the obligation, to buy or sell any of the following at a specific price on or before a certain date:

      (a) Currency of the Kingdom of Bahrain or any other country or territory;
      (b) Palladium, platinum, gold or silver; or other commodity;
      (c) Option to acquire or dispose of a financial instrument of the kind specified by this definition by virtue of the above.
      Amended: January 2011

    • Originator Information

      a) The name of the payer;
      b) The address of the payer; and
      c) The account number of the payer (where funds are being remitted from an account with your bank).
      Added: December 2018

    • Outsourcing

      The use of a person to provide customised services to a licensee other than (a) a member of a licensee's board acting in his capacity as such (b) an individual employed by a licensee under a contract of service or (c) a licensed insurance manager providing services to a captive insurance firm.

    • Outsourcing Provider

      The person providing the customised services as described in the definition of "outsourcing".

    • Overseas Islamic bank licensees

      Deleted [07/2017].

      Deleted: July 2017

    • Overseas Islamic retail bank licensee

      Deleted [07/2017].

      Deleted: July 2017

    • Overseas Islamic wholesale bank licensee

      Deleted [07/2017].

      Deleted: July 2017

    • Over the counter (OTC)

      A decentralised market (as opposed to an exchange market) where geographically dispersed dealers are linked by telephones and computer screens. OTC trades are more often than not denominated in non-standard amounts and on non-standard terms (e.g. maturity outside IMM dates). The term may also refer to trading in securities not listed on a stock or bond exchange.