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  • Recovery Plan

    • IC-1.5.10

      Bahraini Islamic bank licensees must develop, commensurate with the nature, size, complexity and scale of its activities, a recovery plan in line with Chapter 2 of Module DS. Recovery plans must be approved, and reviewed regularly, by the Board. The recovery plan must include information and analysis to reflect the appropriate coverage and granularity of the recovery plan, as well as key elements including:

      (a) Governance arrangements and escalation process following a triggering event;
      (b) Quantitative and qualitative triggers and early warning indicators; and
      (c) Recovery options based on the appropriate number of market-wide (systemic) stress scenarios and bank-specific (idiosyncratic) stress scenarios to assess which recovery options would be effective in a range of stress situations.
      Amended: January 2022
      Added: July 2018

    • IC-1.5.11

      Bahraini Islamic bank licensees must develop and maintain a recovery plan trigger framework (which must be embedded within the bank's risk management framework), to prompt recovery action in a timely manner.

      July 2018

    • IC-1.5.12

      Recovery triggers must be well defined and tailored to the full range of risks faced by banks. Notwithstanding other triggers that might be considered, the capital ratio trigger must not be less than 13%. The threshold level for triggers must be calibrated with impact on the bank's capital and set out clearly in the bank's recovery plan.

      July 2018

    • IC-1.5.13

      Bahraini Islamic bank licensees must establish an adequate monitoring process to support the operation of the trigger framework in their recovery plan.

      July 2018

    • IC-1.5.14

      Bahraini Islamic bank licensees must submit to the CBB annually their recovery plans by the 31st of August.

      Added: July 2021