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  • Claims Secured by Residential Real Estate (RRE)

    • CA-4.2.19

      Financing facilities fully secured by first mortgages on RRE that is or will be occupied by the borrower, or that is leased, carry a risk weighting of 75%.

      January 2015

    • CA-4.2.19A

      The RW for RRE may be reduced to 35% subject to meeting all of the criteria below:

      (a) The RRE is to be utilised for residential purposes only;
      (b) The subject matter of RRE must be pledged as collateral (or serve as quasi-collateral) to the Islamic bank licensee in the case of Murabaha, IMB or diminishing Musharakah;
      (c) There exists a legal infrastructure in the jurisdiction whereby the Islamic bank licensee can enforce the repossession and liquidation of the RRE; and
      (d) The Islamic bank licensee must obtain a satisfactory legal opinion that foreclosure or repossession as mentioned in (c) above is possible without any impediment.
      January 2015

    • CA-4.2.19B

      The RW for residential mortgage exposure granted under the Social Housing Schemes of the Kingdom of Bahrain may be reduced to 25% subject to meeting conditions, (a) and (b) in CA-4.2.19A. The reduced risk weight is subject to ensuring the compliance with the requirements for timely recognition of expected credit loss (ECL) as per the Credit Risk Management Module (Module CM).

      Amended: October 2022
      Added: July 2019