LM-A LM-A Introduction [Version 1 October 2007 to 31 July 2018]
LM-A.1 LM-A.1 Purpose [Version 1 October 2007 to 31 July 2018]
Executive Summary [Version 1 October 2007 to 31 July 2018]
LM-A.1.1 [Version 1 October 2007 to 31 July 2018]
The purpose of this Module is to provide a checklist of the key elements of a sound Liquidity Risk Management system which supervisors can expect their banks to observe.
October 07LM-A.1.2 [Version 1 October 2007 to 31 July 2018]
This module provides support for certain other parts of the Rulebook, mainly:
(a) Licensing Requirements;(b) Principles of Business;(c) CBB Reporting Requirements;(d) Audit Firms; and(e) High-Level Controls.October 07Legal Basis [Version up to 31 July 2018]
LM-A.1.3 [Version up to 31 July 2018]
This Module contains the Central Bank of Bahrain's ('CBB') Directive (as amended from time to time) on liquidity risk management requirements for
Islamic bank licensees , and is issued under the powers available to the CBB under Article 38 of the Central Bank of Bahrain and Financial Institutions Law 2006 (CBB Law). The directive in this Module is applicable to allIslamic bank licensees .Amended: April 2011
Added: January 2011
LM-A.1.4 [Version up to 31 July 2018]
For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1.
Added: January 2011
LM-A.2 LM-A.2 Key Requirements [Version up to 31 July 2018]
LM-A.2.1 [Version up to 31 July 2018]
It is the responsibility of the bank's Board of Directors and management to ensure that the bank has sufficient liquidity to meet its obligations as they fall due.
October 07LM-A.2.2 [Version 31 July 2018]
A bank must inform the CBB of any concerns it has about its current or future liquidity profile, and of its plans to rectify/deal with any problems.
Amended: January 2011
October 2007LM-A.2.3 [Version to 31 July 2018]
The CBB has established certain limits for negative maturity mismatch positions. Positions within such periods should be reported on a quarterly basis.
Amended: April 2014
Amended: January 2011
October 2007LM-A.2.4 [Version up to 31 July 2018]
Currencies should be translated into the reporting currency of the bank (which in any case would be either Bahrain Dinar or US Dollar) at the closing spot mid price on the reporting date and entered in the relevant time band. However, the CBB may also require institutions to provide management information on positions in individual currencies in the event of difficulties either in the individual institution or with the currency in question.
Amended: January 2011
October 2007LM-A.3 LM-A.3 Regulation history [Version up to 31 July 2018]
LM-A.3.1 [Version up to 31 July 2018]
This Module was first issued on 1st January 2005 as part of the Islamic principles volume. All regulations in this volume have been effective since this date. All subsequent changes are dated with the month and year at the base of the relevant page and in the Table of Contents. Chapter 3 of Module UG provides further details on Rulebook maintenance and control.
October 07LM-A.3.2 [Version up to 31 July 2018]
A list of most recent changes made to this Module are detailed in the table below:
Summary of Changes
Module Ref. Change Date Description of Changes LM 01/2011 Various minor amendments to ensure consistency in CBB Rulebook. LM-A.1.3 and LM-A.1.4 01/2011 Added legal basis LM-A.2.3 and LM-1.3.3 04/2014 Corrected frequency of reporting. LM-1.1.3 04/2014 Corrected cross reference. LM-1.1 and LM-1.4 04/2015 Corrected reference to PIRI. Evolution of the Module [Version up to 31 July 2018]
LM-A.3.3 [Version up to 31 July 2018]
The module incorporates the requirements set out under Section F of the Prudential Information Returns for Islamic Banks (PIRI) pack.
Amended July 09
October 07Effective Date [Version up to 31 July 2018]
LM-A.3.4 [Version up to 31 July 2018]
The contents in this Module are effective from the date depicted in the original circulars/pack (see Paragraph LM-A.3.3) from which the requirements are compiled.
October 07
