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  • CA-10.4 CA-10.4 Additional Supervisory Guidance

    • CA-10.4.1

      A higher ratio may be required for any Bahraini Islamic bank licensees if warranted by its risk profile or circumstances. The CBB may use stress testing as a complementing tool to adjust the leverage ratio requirement at the macro- and/or individual Bahraini Islamic bank licensee-level.

      Added: October 2018

    • CA-10.4.2

      The leverage ratio can be used for both micro- and macro prudential surveillance; for example, as a macro prudential tool, a consistent leverage ratio can be applied for all Bahraini Islamic bank licensees as an indicator for monitoring vulnerability. As a micro prudential tool, it can be used as a trigger for increased surveillance or capital requirements for specific licensees under the supervisory review process.

      Added: October 2018