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  • DS-1.2 DS-1.2 General Requirements

    • DS-1.2.1

      Bahraini Islamic bank licensees designated as D-SIBs must hold designated HLA expressed as Common Equity Tier 1 ('CET1') capital at 1.5 percent of the total Risk-Weighted Assets ('RWA'), as calculated for the purposes of capital adequacy.

      July 2018

    • DS-1.2.2

      The HLA requirement must be fully met by the CET1 capital. This is to ensure that the capital held for HLA purposes must be available to absorb losses on a going-concern basis and, as such, enhance the resilience of the relevant D-SIB.

      July 2018

    • DS-1.2.3

      Bahraini Islamic bank licensees designated as D-SIBs will be subject to an annual inspection by the CBB and two prudential meetings per year.

      July 2018

    • DS-1.2.4

      The HLA requirement and the Pillar 2 capital add-on address the external and internal risks associated with banks from different, but complementary perspectives.

      July 2018

    • Disclosure Requirement for D-SIBs

      • DS-1.2.5

        Bahraini Islamic bank licensees designated as D-SIBs must disclose their D-SIB HLA requirement in their capital disclosures for the purpose of disclosures of the composition of the bank's capital base.

        July 2018

    • Recovery and Resolution Plans

      • DS-1.2.6

        Bahraini Islamic bank licensees designated as D-SIBs must develop and maintain Recovery and Resolution Plans (RRPs) specific to their circumstances and reflect the nature, complexity, interconnectedness, level of substitutability and size of the bank in question. The RRPs must be approved by the CBB.

        July 2018