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  • GR-3 GR-3 Dividends and Profit Repatriation

    • GR-3.1 GR-3.1 CBB Non-Objection

      • GR-3.1.1

        Bahraini Islamic bank licensees must obtain CBB’s prior approval for any proposed cash or stock dividend before any public announcements or the Annual General Meeting.

        Amended July 2023
        Amended April 2011
        October 2007

      • GR-3.1.2

        [This Paragraph was deleted in July 2023].

        Deleted: July 2023
        Amended: October 2011
        October 07

      • GR-3.1.3

        For the purpose of Paragraph GR-3.1.1, Islamic bank licensees must:

        (a) Submit the following: 

        (i) The intended percentage and amount of proposed dividends;

        (ii) The impact of proposed dividends on: 

        (a) Capital Adequacy Ratio (CAR), Liquidity Coverage Ratio (LCR), Net Stable Funding Ratio (NSFR), and Leverage Ratio (LR) showing the ratios before and after the proposed dividends;
        (b) The cash flow position and shareholders’ equity level before and after the proposed dividends;
        (iii) Stress testing results evidencing that the proposed dividends would not lead to any breach of the regulatory requirements (CAR, LCR, NSFR and LR) in the last financial year and the next two years under normal and stressed scenarios.
        (b) Satisfy the CBB of the adequacy of impairment provisions during the review of the annual/interim financial statements;
        (c) Ensure that any unrealized gains arising from assets or liabilities fair value assessment are excluded from net income in the determination of the proposed dividends, given that CBB does not permit distribution of unrealised profit;
        (d) Ensure that the amount of realised profits included in the retained earnings as at the year-end is sufficient to cover the proposed dividend amount; and
        (e) Ensure that any negative fair value on assets held at amortised cost do not have any material adverse impact on the capital and liquidity positions where such assets may need to be liquidated before maturity to satisfy any financial obligations, including deposit withdrawals.
        Amended: January 2024
        Amended: July 2023
        Amended: October 2017
        Amended: October 2011
        October 07

    • GR-3.2 Repatriation of Profits by Retail Branches of Foreign Banks

      • GR-3.2.1

        Retail branches of foreign banks must comply with the following when repatriating profits to Head Office:

        (a) The gearing ratio stipulated in Paragraph CA-10.6.3 after repatriation;
        (b) Satisfy the CBB of the adequacy of impairment provisions during the CBB’s review of the annual financial statements;
        (c) Ensure that any unrealized gains arising from assets or liabilities fair value assessment are excluded from net income in the determination of the repatriation;
        (d) Ensure that the amount of realised profits included in the retained earnings (unremitted profits due to head office) as at the year-end is sufficient to cover the proposed profit repatriation amount; and
        (e) Ensure that any negative fair value on assets held at amortised cost do not have any material adverse impact on the capital and liquidity positions where such assets may need to be liquidated before maturity to satisfy any financial obligations, including deposit withdrawals.
        Amended: January 2024
        Added: July 2023