Back Custom print Link Text Only Rich Text Print

  • PD-A PD-A Introduction

    This version of Module PD was replaced in April 2008. Click here for the current Module PD.

    • PD-A.1 PD-A.1 Purpose

      This version of Module PD was replaced in April 2008. Click here for the current Module PD.

      • PD-A.1.1

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        The purpose of this Module is to set out the rules and guidelines that banks should adhere to in order to enhance corporate and financial transparency through better public disclosure.

        October 07

      • PD-A.1.2

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        This Module provides support for certain other parts of the Rulebook, mainly:

        (a) Principles of Business (Module PB);
        (b) High-level Controls (Module HC);
        (c) Audit Firms (Module AU);
        (d) CBB Reporting Requirements (Module BR);
        (e) Capital Adequacy (Module CA);
        (f) Business and Market Conduct (Module BC); and
        (g) Risk Management (i.e. market, credit, liquidity and operational) (Module OM).
        October 07

      • PD-A.1.3

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        This Module also provides support for certain aspects relating to disclosure requirements stipulated in the Decree No. 64 of 2006 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law') and the Bahrain Commercial Companies Law of 2001 (as amended).

        October 07

      • Legal Basis

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        • PD-A.1.4

          This version of Module PD was replaced in April 2008. Click here for the current Module PD.

          This Module contains the CBB's Directive relating to public disclosure 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 all Islamic bank licensees.

          October 07

        • PD-A.1.5

          This version of Module PD was replaced in April 2008. Click here for the current Module PD.

          For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1.

          October 07

    • PD-A.2 PD-A.2 Key requirements

      This version of Module PD was replaced in April 2008. Click here for the current Module PD.

      • General guidance and best practice

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        • PD-A.2.1

          This version of Module PD was replaced in April 2008. Click here for the current Module PD.

          Section PD-B.2 lists the key guidance papers on disclosure as issued by the Basel Committee on Banking Supervision and International Organisation of Securities Commissions. These papers serve as international best practice in financial and other disclosures.

          October 07

      • Annual audited financial statements (annual reports)

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        • PD-A.2.2

          This version of Module PD was replaced in April 2008. Click here for the current Module PD.

          Locally incorporated banks are required to publish their audited financial statements per the rules set out in the CBB Law, Bahrain Commercial Companies Law of 2001 (as amended) and the Bahrain Stock Exchange regulations.

          October 07

        • PD-A.2.3

          This version of Module PD was replaced in April 2008. Click here for the current Module PD.

          Locally incorporated banks must, in their Annual Reports, provide timely information which facilitates market participants' assessment of them. There are seven broad categories of information (as set out in Section PD-1.3 and Section PD-1.4), each of which should be addressed in clear terms and with appropriate details to help achieve a satisfactory level of bank transparency.

          October 07

      • Annual disclosure in the annual audited financial statements of banks listed on the Bahrain Stock Exchange (BSE)

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        • PD-A.2.4

          This version of Module PD was replaced in April 2008. Click here for the current Module PD.

          The Directors' Report attached to the annual financial statements of banks (referred to under Section PD-1.4) should contain details of the interests of Directors, chief executive officers and managers (persons as defined under Section HC-2.1, respectively) in the shares of such banks. Such details should include:

          (a) Total interests in the shares of such banks by individual persons mentioned above, and
          (b) Changes in such interests from the previous financial year to the current financial year.
          October 07

      • Semi-annual disclosure by commercial branches of foreign banks

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        • PD-A.2.5

          This version of Module PD was replaced in April 2008. Click here for the current Module PD.

          Banks (referred to under Section PD-2.2) are required by the Central Bank to prepare and disclose to the public the following information (in the same format as their Annual Audited Accounts) for their Bahrain operations on a semi-annual basis:

          (a) Balance Sheet, and
          (b) Profit and Loss Accounts
          October 07

      • Publication of reviewed (unaudited) quarterly financial statements

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        • PD-A.2.6

          This version of Module PD was replaced in April 2008. Click here for the current Module PD.

          Banks should prepare reviewed (unaudited) quarterly financial statements on a quarterly basis in accordance with FAS 1 issued by AAOIFI. Such statements should be in the same form, and should be prepared on the same basis, as is required by FAS 1 for banks' annual published financial statements.

          October 07

      • Disclosure of charges

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        • PD-A.2.7

          This version of Module PD was replaced in April 2008. Click here for the current Module PD.

          The Central Bank requires all retail banks to display, by a conspicuous notice, their current effective charges.

          October 07

      • Disclosure relating to Deposit Protection Schemes (the "Scheme")

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        • PD-A.2.8

          This version of Module PD was replaced in April 2008. Click here for the current Module PD.

          The Central Bank requires all retail banks to give prominence to the protection of deposits afforded under the Deposit Protection Scheme (see Chapter CP-2) - for example in related marketing materials and in general notices featured within banking halls and in account documentation, including audited financial statements.

          October 07

      • Public disclosure via the internet

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        • PD-A.2.9

          This version of Module PD was replaced in April 2008. Click here for the current Module PD.

          Non-listed locally incorporated OBUs and IBs may apply to the Central Bank to disclose their quarterly financial statements via the Internet. If a non-listed locally incorporated OBU or IB wishes to cease disclosure of quarterly financial statements via the local press and use the internet instead, it must satisfy the following criteria:

          (a) The bank has no shareholders resident in Bahrain.
          (b) The bank has no customers resident in Bahrain. Customers include borrowers, depositors, investment account holders or persons from whom the bank earns fees or commissions. 'Customers' in this context would not include other banks, but would include Bahraini corporations, the Government of Bahrain and its agencies, and private individuals (whether high net worth or not).
          (c) The bank does not market itself in any way to residents of Bahrain. In particular, the bank should not market funds or other financial products to residents, even if the bank has no on balance sheet assets or liabilities arising from Bahraini residents.
          October 07

    • PD-A.3 PD-A.3 Module History

      This version of Module PD was replaced in April 2008. Click here for the current Module PD.

      • PD-A.3.1

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        This Module was first issued in January 2005 by the BMA as part of the Islamic principles volume. All regulations in this volume have been effective since this date. Any material changes that have subsequently been made to this Module are annotated with the calendar quarter date in which the change was made: Chapter UG-3 provides further details on Rulebook maintenance and version control.

        October 07

      • PD-A.3.2

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        When the CBB replaced the BMA in September 2006, the provisions of this Module remained in force. Volume 2 was updated in October 2007 to reflect the switch to the CBB; however, new calendar quarter dates were only issued where the update necessitated changes to actual requirements.

        October 07

      • PD-A.3.3

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        A list of the most recent changes made to this Module are detailed in the table below:

        Summary of changes

        Module Ref. Change Date Description of Changes
        PD-2.1.5 & 3.1.7 Jan 2006 Revised notification for submission of accounts to the Central Bank.
        PD-4.3 July 2006 Amendment to disclosure of charges requirements.
        PD-A.1.4 10/2007 New Rule PD-A.1.4 introduced categorising this Module as a Directive.
        PD-1.3 10/2007 New Rule PD-1.3.8 requiring disclosure of penalties paid
        October 07

      • Evolution of the Module

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        • PD-A.3.4

          This version of Module PD was replaced in April 2008. Click here for the current Module PD.

          Prior to the development of this Rulebook, the Central Bank had issued various circulars representing regulations covering different aspects of public disclosure requirements. These circulars have now been consolidated into this Module covering regulations relating to public disclosure requirements. These circulars and their evolution into this Module are listed below:

          Circular Ref. Date of Issue Module Ref. Circular Subject
          BC/4/99 17 Mar 1999 PD-1.3 Annual Accounts for the Year Ending 31 December 1999.
          BC/10/97 3 Aug 1997 PD-1.3 Accounting and Auditing Standards for Islamic Financial Institutions.
          no reference (partial) Apr 1981 PD-1.5 Precious Metals and Commodities.
          CBB/751/93 8 Jul 1993 PD-1.1, PD-1.3, PD-1.4, PD-3.2 Directors' Interest in the Shares of, and the Unaudited Quarterly Financial Statements of, Locally Incorporated Banks Quoted on the Bahrain Stock Exchange.
          EDBC/782/93 17 Jul 1993 PD-1.1 The Interests of Directors, Chief Executive and Senior Managers in the Shares of Locally Incorporated Banks Quoted on the Bahrain Stock Exchange.
          BC/1/99 22 Feb 1999 PD-2.2 Enhancing Bank Transparency.
          OG/73/02 17 Feb 2002 PD-4.2 Duty to Display Current Effective Rate of Interest.
          ODG/248/2004 25 Jul 2004 PD-4.2 Consumer Finance.
          BC/20/99 28 Sep 1999 PD-2.2 Enhancing Islamic Banks Transparency.
          OG/107/01 3 Mar 2001 PD 4.3 Disclosure of BD Interest Rates
          OG/425/94 21 Dec 1994 PD 4.4 Deposit Protection
          OG/423/93 28 Nov 1993 PD 4.4 Deposit Protection Scheme (the 'Scheme')
          October 07

      • Effective date

        This version of Module PD was replaced in April 2008. Click here for the current Module PD.

        • PD-A.3.5

          This version of Module PD was replaced in April 2008. Click here for the current Module PD.

          The contents in this Module are effective from the date depicted in the original circulars (see Paragraph PD-A-3.3) from which the requirements are compiled.

          October 07