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  • CP-1 CP-1 Deposits and Unrestricted Investment Accounts Protection Board

    • CP-1.1 CP-1.1 Constitution of the Board

      • CP-1.1.1

        The contents of this Chapter set out the details of the constitution, authority and administration of the Board.

        October 2012

      • CP-1.1.2

        The Board is, subject to and in accordance with the terms and conditions of the Regulation, responsible for the protection of Eligible Accounts, including determining:

        (a) What contributions Islamic retail bank licensees should make to the Islamic Fund;
        (b) The amount of compensation to be paid out to Eligible account holders; and
        (d) Any additional rules under which the Board will operate.
        October 2012

      • CP-1.1.3

        The Board consists of eleven persons appointed by the Governor of the CBB, whose period of membership must be for a three-year renewable period:

        (a) Two representatives of the CBB, one of whom should be Chairman and the other the Deputy Chairman of the Board;
        (b) Four representatives of retail banks in Bahrain, who should be appointed by the Governor;
        (c) Two representatives of Government, the first representing the Ministry of Finance, the second representing the Ministry of Industry and Commerce, both should be nominated by their respective Ministers; and
        (d) Three independent persons, not from the above categories, appointed by the Governor.
        October 2012

      • CP-1.1.4

        The Board administers the two Funds established in accordance with Article 13 of the Regulation, and is responsible for all decision-making and accounting treatment in respect of the two Funds. No liability attaches to the CBB as a result of the Board managing the two Funds.

        October 2012

    • CP-1.2 CP-1.2 Convening of the Board

      • CP-1.2.1

        The Board must be convened and must commence its responsibilities by following the compensation process for the Eligible account holders upon:

        (a) Any Islamic retail bank licensee being put under administration by the CBB; or
        (b) Any Islamic retail bank licensee being put into liquidation.

        In each case, such bank hereinafter referred to as a "defaulting bank".

        October 2012

    • CP-1.3 CP-1.3 Voting by the Board

      • CP-1.3.1

        The Board meets as often as is necessary to carry out its duties under the Regulation referred to in this Module and takes decisions by a simple majority vote of those present at any meeting thereof provided that, in the event of a tie, the Chairman will have the casting vote.

        October 2012

      • CP-1.3.2

        Decisions of the Board are binding and are not subject to appeal.

        October 2012