CP-2.3 CP-2.3 The Deposits and Unrestricted Investment Accounts Protection Funds
CP-2.3.1
For the purpose of the Scheme, the Board administers two separate funds referred to as the "Conventional Banks Fund" and the "Islamic Banks Fund" as defined under Article 1 of the Regulation. Each Fund shall constitute a separate legal entity and shall have an independent balance sheet from the CBB.
October 2012CP-2.3.2
Islamic retail bank licensees collectively contribute an initial aggregate amount of BD20 million (Twenty Million Bahraini Dinars) over a period of fifteen years and title to such monies once contributed shall legally belong to the Islamic banks Fund.
October 2012CP-2.3.3
The Board periodically assesses the size of the Islamic Fund in relation to liabilities to be covered and, where appropriate, makes recommendations to the CBB for increasing or decreasing the amount of the Islamic Fund. No such adjustments to the aggregate amount BD80 million (Eighty Million Bahraini Dinars) for both Funds shall be made without the express approval of the CBB.
October 2012CP-2.3.4
The contribution of each Islamic retail bank licensee in the total amount of the Fund is determined on an annual pro-rata basis of the total
Eligible Accounts of all Islamic retail bank licensees in Bahrain.Amended: April 2014
October 2012CP-2.3.4A
The CBB provides the Board with the necessary data to allow it to determine the amounts of contributions each Islamic retail bank licensee must make. The Board may allow the Islamic retail bank licensees to make its contribution in the form of quarterly installments which shall be charged against the profit & loss account of the banks.
Added: April 2014CP-2.3.4B
Each Islamic retail bank licensee must submit to the CBB within 2 months of the financial year end a report on all
eligible accounts in accordance with Section BR-1.4.Added: April 2014CP-2.3.5
No contribution (or part thereof) is refundable to an Islamic retail bank licensee in any circumstance.
October 2012CP-2.3.6
Islamic retail bank licensees pay the contributions referred to in Paragraph CP-2.3.4 within the periods specified by the Board. Each Islamic retail bank licensee is notified of the amount of its calculated contribution as well as the date of payment thereof.
October 2012CP-2.3.7
In the event of failure of any Islamic retail bank licensee in the payment of the full contribution during the periods specified by the Board, the CBB may take enforcement action against that bank, including the imposition of administrative fines in accordance with Article 129 of the CBB Law and, in cases of repeated violation, withdrawal of the licence granted by the CBB.
October 2012CP-2.3.8
In the event that a new Islamic retail bank licensee joins the Islamic Fund during any year, the Board determines the contribution of that bank to the Fund on the basis of the minimum payment made by other participating banks during that year for the remaining period of the year after dividing the full contribution amount over the number of months of a year. At the beginning of the following year, there will be an assessment of that bank's contribution based on the size of its
Eligible Accounts base.October 2012CP-2.3.9
The Board determines the investment policy of the Funds and the CBB is responsible for implementing such policy without receiving any commission or charges in return. Investments made from the Islamic Fund must comply with Islamic Shari'a principles and be under the supervision of the CBB's Shari'a Board.
October 2012
