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  • LR-4 LR-4 License Fees

    • LR-4.1 LR-4.1 License Application Fees

      • LR-4.1.1

        With immediate effect, applicants seeking an Islamic bank license from the CBB must pay a non-refundable license application fee of BD 100 at the time of submitting their formal application to the CBB.

        October 2007

      • LR-4.1.2

        There are no application fees for those seeking approved person status.

        October 2007

    • LR-4.2 LR-4.2 Annual License Fees

      • LR-4.2.1

        Islamic bank licensees must pay the relevant annual license fee to the CBB on 1st of December of the previous year for which the fees are due.

        Amended: July 2013
        October 2007

      • LR-4.2.2

        Islamic retail bank licensees must pay a variable annual licensing fee based on 1% of their total annual operating expenses by way of an annual license fee, subject to a floor of BD30,000 and a cap of BD240,000.

        Amended: July 2013
        October 2007

      • LR-4.2.3

        Bahraini Islamic wholesale bank licensees must pay a variable annual licensing fee based on 0.5% of their total annual operating expenses by way of an annual license fee, subject to a floor of BD13,000 and a cap of BD100,000.

        Amended: July 2013
        October 2007

      • LR-4.2.4

        Wholesale branches of foreign banks licensees must pay a variable annual licensing fee based on 0.25% of their total annual operating expenses by way of an annual license fee, subject to a floor of BD13,000 and a cap of BD100,000.

        Amended: July 2017
        Amended: July 2013
        October 2007

      • LR-4.2.5

        The fees due on 1st December are those covering the following calendar year and are calculated on the basis of the Islamic bank's latest audited financial statements for the previous calendar year: i.e. the fee payable on 1st December 2013 for the 2014 year (for example) is calculated using the audited financial statements for 2012, assuming a 31st December year end. Where a licensee does not operate its accounts on a calendar-year basis, then the most recent audited financial statements available are used instead.

        Amended: July 2013
        October 2007

      • LR-4.2.6

        Relevant operating expenses are defined as the total operating expenses of the licensee concerned, as recorded in the most recent audited financial statements available, subject to the adjustments specified in Rule LR-4.2.7.

        October 2007

      • LR-4.2.7

        The adjustments to be made to relevant operating expenses are the exclusion of the following items from total operating expenses:

        (a) Training fees;
        (b) Charitable donations;
        (c) Previous year's CBB fees paid; and
        (d) Non-executive Directors' remuneration.
        Amended: July 2013
        October 2007

      • LR-4.2.8

        For the avoidance of doubt, operating expenses for the purposes of this Section, do not include items such as depreciation, provisions, profits payable to Investment Account Holders, and dividends.

        October 2007

      • LR-4.2.9

        The CBB would normally rely on the audited accounts of a licensee as representing a true and fair picture of its operating expenses. However, the CBB reserves the right to enquire about the accounting treatment of expenses, and/or policies on intra-group charging, if it believes that these are being used artificially to reduce a license fee.

        October 2007

      • LR-4.2.9A

        Islamic bank licensees must pay a fixed annual fee of BD 1,000 for each locally incorporated SPV in Bahrain which is under the control of and/or providing an actual business function, service or activity (whether actively or passively) for the bank and/or others at the bank's direction or having been established under the bank's direction for that purpose. The CBB approval for any new SPV will only be granted, once the annual fee has been paid. The full amount of the BD 1,000 annual fee is due in the year the SPV is set up and it is not prorated for the number of months remaining in the year.

        Amended: October 2013
        Amended: April 2011
        Adopted: January 2011

      • LR-4.2.9B

        Paragraph LR-4.2.9A does not apply to SPVs of Bahrain domiciled CIUs. In the case of Bahrain domiciled CIUs, banks should refer to the relevant Chapter in Module ARR of Volume 7, depending on the classification of the Bahrain domiciled CIU.

        Added: July 2012

      • LR-4.2.10

        Islamic Bank licensees must complete and submit Form ALF (Annual License Fee) to the CBB 15th October of the preceding year for which the fees are due.

        Amended: July 2013
        October 2007

      • LR-4.2.10A

        All Islamic bank licensees are subject to direct debit for the payment of the annual fees and must complete and submit to the CBB a Direct Debit Authorisation Form by 15th September, available under Part B of Volume 2 (Islamic Banks) CBB Rulebook on the CBB Website.

        Added: July 2013

      • LR-4.2.11

        For new licensees, their first annual license fee is payable when their license is issued by the CBB. The amount payable is the floor amount specified for Islamic bank licensees, reduced on a pro-rata basis such that they are charged only for the number of complete months left in the current calendar year.

        October 2007

      • LR-4.2.12

        For example, if an Islamic retail bank is issued a license on 6 June 2007, then it would be asked to pay an annual license fee that same month, covering the remaining period left for the calendar year 2007. The fee would be calculated as BD30,000 (the minimum amount payable by an Islamic retail bank licensee, multiplied by 6/12 (the number of complete months left in the year, i.e. July to December inclusive, divided by the total number of months in the year), giving a fee liability of BD 15,000. For the following year (2008) annual fee, the licensee would submit a Form ALF by 15th October 2007, and calculate its fee as the floor amount. For future years, the licensee would submit a Form ALF by 15th October of the preceding year for which the fees are due and calculate its fee using its last audited financial statements (or alternative arrangements as agreed with CBB, should its first set of accounts cover an 18-month period).

        Amended: July 2013
        October 2007

      • LR-4.2.13

        Where a license is cancelled (whether at the initiative of the firm or the CBB), no refund is paid for any months remaining in the calendar year in question, should a fee have been paid for that year.

        Amended October 2010
        October 2007

      • LR-4.2.14

        Islamic bank licensees failing to comply with this Section may be subject to financial penalties for date sensitive requirements as outlined in Section EN-6.2A or may have their licenses withdrawn by the CBB.

        Added: July 2013