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  • Exposures Undertaken by a Subsidiary Bank

    • CM-4.5.7

      Where exposures undertaken by a Bahrain subsidiary of an overseas bank are guaranteed by its parent bank, the Bahrain subsidiary bank may be deemed to have an exposure to its parent bank.

      Amended: January 2011
      October 2007

    • CM-4.5.8

      Under the terms of this Module (See Paragraph CM-4.5.2(f)), such indirect exposures to a parent bank may be exempt from the limits on large exposures if the CBB is satisfied that:

      (a) Such exposures have been pre-notified to the CBB for the CBB's approval and are entered into within the terms of a policy agreed by the parent bank;
      (b) There are guarantees in place from the parent bank to protect the subsidiary should the exposure become impaired or require to be written off; and
      (c) In the case of banks, which are the Bahrain subsidiaries of overseas banks, the supervisory authority of the parent bank has approved the exposures that can be undertaken by the Bahrain subsidiary.
      Amended: January 2015
      Amended: January 2011
      October 2007

    • CM-4.5.9

      In the case of a Bahrain incorporated bank's subsidiary inside Bahrain, in order for an exposure exceeding 15% of Total Capital to be acceptable in the subsidiary, the Bahrain parent bank must at all times have the capacity to take on the exposure to the third party, without itself exceeding the limit of 15% of its own Total Capital. Also, the total exposure of the banking group to the customer must be within 15% of the parent bank's consolidated Total Capital.

      Amended: April 2015
      Amended: January 2015
      Amended: January 2011
      October 2007

    • CM-4.5.10

      The Central Bank will need to be satisfied that adequate control systems are in place to ensure that credit risks taken in the group as a whole are properly monitored and controlled.

      Amended: January 2011
      October 2007