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  • GR-4.2 GR-4.2 Procedure with Respect to Applications

    • GR-4.2.1

      Islamic bank licensees wishing to transfer banking business in the Kingdom must apply to the Executive Director of Banking Supervision by submitting an application form along with the supporting documents as specified by the CBB (see Part B, Supplementary Information, Appendix GR-1). Unless otherwise directed by the CBB, the application must provide:

      (a) Full details of the business to be transferred including a detailed list of all liabilities or assets that will be transferred;
      (b) The rationale for the proposed transfer;
      (c) If applicable, an assessment of the impact of the transfer on any customers directly affected by the transfer, and any mitigating factors or measures;
      (d) If applicable, an assessment of the impact of the transfer on the transferor's remaining business and customers; and
      (e) Evidence that the proposed transfer has been duly authorised by the transferor (such as a certified copy of a Board resolution approving the transfer).
      Added: October 2012

    • GR-4.2.2

      Banks intending to apply to transfer a regulated service are advised to contact the CBB at the earliest possible opportunity, in order that the CBB may determine the nature and level of any documentation and/or the need for an auditor or other expert opinion to be provided. The CBB will grant its permission where the transfer will have no negative impact on the financial soundness of the bank, and does not otherwise compromise the interests of the bank's depositors and creditors. In all cases, the CBB will only grant its permission where the institution acquiring the regulated service holds the appropriate regulatory approvals and is in good regulatory standing.

      Added: October 2012

    • Preliminary Assessment

      • GR-4.2.3

        The CBB will make a preliminary assessment of whether the proposed transfer is of a type that could be considered for approval or not based on the receipt of the documents referred to in Paragraph GR-4.2.1. If rejected, the applicant will be informed accordingly. The CBB will approve/reject the transfer of business application form after the submission of all necessary documents within 14 calendar days of the date where all documents have been submitted.

        Amended: January 2013
        Added: October 2012

    • Publication of the Transfer of Business Application

      • GR-4.2.4

        In instances where the CBB is in favor of the transfer requested, and in accordance with Article 66(c) of the CBB Law, the transfer of business application will be published by the CBB in the Official Gazette and in two daily newspapers in the Kingdom of Bahrain (one in Arabic and one in English). The CBB notice will include a statement that written representations concerning the transfer of business application may be sent to the CBB within three months from the date of publication.

        Added: October 2012

      • GR-4.2.5

        If the liabilities are located in a jurisdiction outside Bahrain, the CBB may also publish such notice in the jurisdiction in which the risk is situated.

        Added: October 2012

      • GR-4.2.6

        In all cases, the costs of publication of the notices referred to in Paragraphs GR-4.2.5 and GR-4.2.6 must be met by the transferor.

        Added: October 2012