• ST-A ST-A Introduction

    • ST-A.1 ST-A.1 Purpose

      • Executive Summary

        • ST-A.1.1

          This Module sets out the Central bank of Bahrain's ('CBB's') directives and guidance to Islamic bank licensees operating in Bahrain on the key requirements of an effective stress testing programme, and describes the CBB's approach to assessing the adequacy of banks stress testing practices. The contents of this Module apply to all Islamic banks, except where noted in individual Chapters.

          July 2018

        • ST-A.1.2

          This Module should be read in conjunction with other parts of the Rulebook, mainly:

          (a) Principles of Business;
          (b) High-level Controls;
          (c) Risk Management (credit risk, market risk, operational risk, reputational risk, liquidity risk and rate of return risk in banking book);
          (d) Internal Capital Adequacy Assessment Process (ICAAP); and
          (e) Capital Adequacy.
          July 2018

      • Legal Basis

        • ST-A.1.3

          This Module contains the CBB's Directive (as amended from time to time) relating to Stress Testing and is issued under the powers available to the CBB under Article 38 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'). The Directive in this Module is applicable to all Islamic bank licensees (including their approved persons).

          July 2018

        • ST-A.1.4

          The requirements for stress-testing covered in this Module for the purpose of capital adequacy, ICAAP, recovery planning and reverse stress testing apply to Bahraini Islamic bank licensees only.

          Amended: October 2019
          July 2018

        • ST-A.1.4A

          Branches of foreign bank licensees must apply the requirements included in this Module for risks that are material and to the extent appropriate. If branches of foreign bank licensees do not have established policies, procedures, processes and systems at a branch level, they must satisfy the CBB that there are equivalent arrangements at their head office or regional office.

          Added: October 2019

        • ST-A.1.5

          For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1.

          July 2018

    • ST-A.2 ST-A.2 Module History

      • Evolution of the Module

        • ST-A.2.1

          This Module is issued in July 2018 as part of Volume Two of the CBB Rulebook. The requirements in this Module become effective from the date of issuance. Any material changes that have subsequently been made to this Module are annotated with the calendar quarter date in which the change was made; Chapter UG-3 provides further details on Rulebook maintenance and version control.

          July 2018

        • ST-A.2.2

          The changes made to this Module are detailed in the table below:

          Summary of Changes

          Module Ref. Change Date Description of Changes
          ST-A.1.4 10/2019 Amended Paragraph on branches of foreign bank licensees.
          ST-A.1.4A 10/2019 Added a new Paragraph on branches of foreign bank licensees.