CP-A.1 CP-A.1 Purpose
CP-A.1.1
The purpose of this Module is to set out rules and regulations establishing a Deposit Protection Scheme (the 'Scheme') for compensating eligible depositors (as defined under Section CP-2.1) when the banks (referred to under Section CP-2.1) are unable, or likely to be unable, to satisfy claims against them.
October 07CP-A.1.2
The body established to operate and administer the compensation scheme is the Deposit Protection Board (the 'Board'). The Module sets out rules and regulations that would allow the Board to:
(a) Administer and implement the scheme;(b) Calculate compensation amount; and(c) Establish rules of operation.Amended: January 2011
October 07CP-A.1.3
The Module also specifies:
(a) Who is eligible for receiving compensation;(b) How the scheme will be funded;(c) Who the contributing banks are; and(d) What are contributing banks' responsibilities regarding the implementation of the scheme.Amended: January 2011
October 07Legal Basis
CP-A.1.4
This Module sets out how the CBB now applies Resolution No. 3 of His Highness the Prime Minister dated 1st November 1993 (the "Resolution") in light of certain legislative and regulatory changes that have taken place since that date. It also contains a modified version of a Regulation issued by the Bahrain Monetary Agency by way of circular (OG/423/93) on 28th November 1993 (the "Regulation") in order to implement the Resolution. The Regulation (as modified) is currently effective by virtue of Article 188 (and Article 4) of the Central Bank of Bahrain and Financial Institutions Law 2006 ("CBB Law"). The Regulation is applicable to all
Islamic bank licensees .Adopted: January 2011CP-A.1.5
For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1
Adopted: January 2011
