GR-4.1 GR-4.1 CBB Approval
GR-4.1.1
In accordance with the CBB Governor s Resolution No.(33) for the year 2012 issued pursuant to Article 66 of the CBB Law, an
Islamic bank licensee (transferor ) must seek prior written approval from the CBB before transferring any regulated banking service to a person (transferee ), except in the following circumstances:(a) Where the transferred business is limited to the assets and/or liabilities of thetransferor and does not include anyregulated banking services ; or(b) Where the regulated service transferred accounts for less than 5% of thetransferor s total assets and/or liabilities as recorded in the unconsolidated balance sheet of the financial quarter preceding the date of the transfer of business application.Added: October 2012GR-4.1.2
For purposes of Paragraph GR-4.1.1 (a), a business transfer refers to a transfer of the rights and obligations of one
Islamic bank licensee to a third party, so that the customers continue to be subject to the same terms and conditions as those originally agreed.Added: October 2012GR-4.1.3
In instances where Subparagraph GR-4.1.1(b) applies,
Islamic bank licensees must notify the CBB before transferring anyregulated banking service to atransferee one month prior to the transfer taking place.Added: October 2012GR-4.1.4
Rule GR-4.1.1 is intended to apply to circumstances where a bank wishes to transfer all or part of its business (examples: credit card business, asset management business) to a third party, or is undertaking winding up proceedings.
Added: October 2012GR-4.1.5
In the case of a
Bahraini Islamic bank licensee , Chapter GR-4 applies to its assets and liabilities booked in Bahrain. In the case ofbranches of foreign bank licensee , Chapter GR-4 applies only to assets and liabilities booked in the bank's Bahrain branch.Amended: April 2020
Added: October 2012
