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  • PD-A.2 PD-A.2 General Requirements

    • PD-A.2.1

      All Bahraini Islamic bank licensees must have a formal disclosure policy, inclusive of Shari'a issues, as part of their overall communications strategy approved by the Board of Directors (and supported by documented procedures) that addresses the disclosures that the bank makes and the internal controls over the disclosure process. In addition, all Bahraini Islamic bank licensees must carry out an annual review of the validity of their disclosures (in terms of scope and accuracy) as outlined in Sections BR-5.2 and AU-3.2.

      Amended: July 2017
      Amended: April 2016
      April 2008

    • PD-A.2.2

      All Bahraini Islamic bank licensees are required to publish their annual audited and reviewed quarterly financial statements per the rules set out in this Module and the CBB Law, Bahrain Commercial Companies Law (as amended), the Rulebook of the licensed exchange and Volume 6 (Capital Markets), where applicable. Such financial statements must be prepared in accordance with the Financial Accounting Standards (FAS) issued by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). When there are no specific accounting standards under AAOIFI, Islamic banks must use International Financial Reporting Standards (IFRS). Listed banks must refer to Paragraph PD-A.2.6.

      Amended: April 2016
      Amended October 2011
      Amended January 2011
      Amended October 2010
      April 2008

    • PD-A.2.3

      The CBB requires that each bank maintain an up-to-date checklist of all applicable AAOIFI standards and IFRS (where applicable) and also the disclosure requirements set out in this Module for full compliance purposes. Such checklists should be part of the bank's public disclosure procedures.

      Amended October 2010
      April 2008

    • PD-A.2.4

      The disclosure requirements specified in Chapters 1, 3 and 6 of this Module, which are in addition to those required by applicable accounting standards, must be reviewed by the bank's external auditor based upon agreed upon procedures (unless AAOIFI Standards or IFRS require that the concerned disclosures are audited). See also BR-1.1, BR-2.2 and AU-3.1 for more details.

      Amended October 2011
      Amended October 2010
      April 2008

    • PD-A.2.4A

      The disclosure requirements mentioned in Paragraph PD-A.2.4 must be presented as an accompanying document or appendices to the Annual Report or in the Notes to the Financial Statements.

      Amended: April 2016
      October 2010

    • PD-A.2.5

      The external auditor must also review other statements in the Annual Report (such as the Chairman's report) to ensure that such statements are consistent with the audited financial statements and the disclosures required by this Module. All qualitative or descriptive disclosures in the Annual Report must be based upon, and be reflective of, the facts and actual practice employed by the bank (and be subject to the above review by the bank's external auditor).

      Amended October 2010
      April 2008

    • PD-A.2.6

      If situations arise where disclosures required in this Module are in conflict with those required under AAOIFI Standards and IFRS and/or any listing requirements issued by the CBB or a licensed exchange, listed banks should first follow the CBB's requirements as contained in Volume 6 (Capital Markets). Unlisted banks should first follow AAOIFI standards. In such situations, banks should explain any material differences between the accounting or other disclosures and the disclosure required in this Module. This explanation does not have to take the form of a line by line reconciliation, but should provide stakeholders with sufficient detail to make an objective assessment of the bank's financial and operational health. Moreover, a formal notification to the CBB is required in such a situation.

      Amended: July 2012
      Amended October 2011
      Amended January 2011
      Amended October 2010
      April 2008

    • PD-A.2.7

      The bank should decide which disclosures are relevant for it based on the materiality concept and subject to the concurrence of the bank's external auditor. For the bank's guidance, information would be regarded as material if its omission or misstatement could change or influence the assessment or decision of a user relying on that information for the purpose of making economic decisions.

      Amended October 2010
      April 2008

    • PD-A.2.8

      Non-compliance with these disclosure requirements could lead to enforcement actions as outlined in Module EN (Enforcement).

      Amended: April 2016
      Amended October 2010
      April 2008

    • PD-A.2.9

      The disclosures referred to in this Module must be made at the top consolidated level of a banking group (i.e. at the level of the parent bank in Bahrain). Disclosures related to individual banks within a banking group will be required where listing requirements or differing accounting requirements necessitate such separate disclosure.

      Amended: April 2016
      April 2008

    • PD-A.2.10

      With effect from 31st December 2016, Bahraini Islamic bank licensees must follow a 3-step approach to provide a full reconciliation of all regulatory capital elements back to the published financial statements.

      Added: April 2016

    • PD-A.2.10A

      The 3-step approach is not based on a common template because the starting point for reconciliation, the bank's reported balance sheet, may vary slightly in composition from bank to bank. Full details of the reconciliation process and associated disclosures are provided in Appendix PD-2.

      Added: April 2016

    • PD-A.2.11

      With effect from 31st December 2016, Bahraini Islamic bank licensees must use a common template to provide a description of the main features of regulatory capital instruments issued. Full details are provided in Appendix PD-3.

      Added: April 2016

    • PD-A.2.12

      With effect from 31st December 2016, Bahraini Islamic bank licensees must disclose the full terms and conditions of all outstanding regulatory capital instruments on their website.

      Added: April 2016

    • PD-A.2.13

      With effect from 31st December 2016, Bahraini Islamic bank licensees must use a modified version of the post 1 January 2019 template mentioned in Paragraph PD-A.2.15 until 31 December 2018. This template is established to disclose the components of capital that are benefiting from the transitional arrangements. The template and accompanying notes are provided in Appendix PD-4.

      Added: April 2016

    • PD-A.2.14

      [This Paragraph has been left blank].

      Added: April 2016

    • PD-A.2.15

      With effect from 1 January 2019, Bahraini Islamic bank licensees must use a common template (set out in Appendix PD-1) to report the breakdown of their regulatory capital when the transition period for the phasing-in of deductions ends. The template is designed to disclose all regulatory adjustments, including amounts falling below thresholds for deduction, and thus enhance consistency and comparability in the disclosure of the elements of capital between banks and across jurisdictions.

      Added: April 2016