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  • CP-1 CP-1 Deposit Protection Board (the 'Board')

    • CP-1.1 CP-1.1 Constitution of the Board

      • CP-1.1.1

        The contents of this chapter set out the details of the constitution, authority and administration of the Deposit Protection Board (the 'Board').

        October 07

      • CP-1.1.2

        The Deposit Protection Board (the 'Board') should, subject to and in accordance with the terms and conditions of this Module, be responsible for:

        (a) The administration and implementation of a Deposit Protection Scheme (the 'Scheme');
        (b) The determination of the amount of compensation which is to be paid out under the Scheme in the event of the liquidation of a relevant bank (as defined in Section CP-1.2 below); and
        (c) The establishment of the rules of operation of the Board.
        Amended: January 2011
        October 07

      • CP-1.1.3

        The Board should consist of the following persons, whose period of membership of the Board (other than in the case of the person referred to in Paragraph CP-1.1.3(e) below) should be for a three year renewable period:

        (a) Two representatives of the CBB, who shall be appointed by the Governor of the CBB, one of whom should be Chairman of the Board;
        (b) Four representatives of commercial banking firms in Bahrain, who should be appointed by the Governor of the CBB following consultation with the Bankers' Society of Bahrain;
        (c) One representative of each of the Ministries of Finance and National Economy, of Justice and Islamic Affairs, and of Commerce, who should be appointed by their Ministers;
        (d) One representative of the Bahrain Chamber of Commerce and Industry, who should be appointed by the President thereof; and
        (e) Upon a commercial banking firm becoming a relevant bank in accordance with Section CP-1.2, and for the purpose of the operation of the Scheme in the case of that relevant bank only, the liquidator of such relevant bank.
        Amended: January 2011
        October 07

      • CP-1.1.4

        Upon the appointment of the members of the Board (other than the person referred to in Paragraph CP-1.1.3(e) above), the Board shall be formally constituted by a Resolution of the Minister of Finance.

        October 07

    • CP-1.2 CP-1.2 Convening of the Board

      • CP-1.2.1

        The Board should be convened and ready to carry out its duties in the case of:

        (a) A forced liquidation carried out pursuant to the CBB Law, no later than 7 calendar days after the CBB has applied to the Minister of Finance, under the provisions of Article 143 of the CBB Law, for his approval for an application to be made to the Bahrain courts for an insolvent banking firm (herein referred to as the 'relevant bank') in accordance with Article 144 and 145 of the pre-mentioned Law, or
        (b) The liquidation of a relevant bank in any other case, no later than 7 days after the CBB is informed that a relevant bank is to be wound up.
        Amended: January 2011
        October 07

    • CP-1.3 CP-1.3 Voting by the Board

      • CP-1.3.1

        The Board should meet as often as is necessary to carry out its duties under the regulation set out in this Module and should take decisions by a simple majority vote of those present at any meeting thereof provided that, in the event of a tie, the Chairman will have the casting vote.

        October 07

      • CP-1.3.2

        Decisions of the Board will be binding and will not be subject to appeal.

        October 07