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  • 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