Back Custom print Link Text Only Rich Text Print

  • Chapter 2 Chapter 2 Deposit and Unrestricted Investment Accounts Protection Board

    • Article 2

      There shall be established by the CBB a Board named the "Deposit and Unrestricted Investment Accounts Protection Board" which shall be responsible for the protection of Eligible Accounts in accordance with the provisions of this Regulation, including determining:

      1) What contributions Banks should make to the Conventional Fund and Islamic Fund respectively;
      2) The amounts of compensation to be paid out to Eligible Depositors and/or Investors in accordance with this Regulation; and
      3) Any additional rules under which the Board will operate.

    • Article 3

      The Board shall consist of eleven persons appointed by the Governor, whose period of membership shall be for a three year renewable period:

      1) two representatives of the CBB, one of whom shall be Chairman and the other the Deputy Chairman of the Board;
      2) four representatives of retail banks in the Kingdom, who shall be appointed by the Governor;
      3) two representatives of Government, the first representing the Ministry of Finance, the second representing the Ministry of Industry & Commerce, both of whom shall be nominated by their respective Ministers; and
      4) three independent persons, not from the above categories, appointed by the Governor.

      The Board shall administer the two Funds established in accordance with Article 13 of this Regulation, and shall be responsible for all decision-making and accounting treatment in respect of the two Funds. No liability shall be assumed by the CBB resulting from the management of the Board of the two Funds.

    • Article 4

      The Board shall commence its responsibilities by following the compensation process for the Eligible Depositors and/or Investors upon:

      1) Any Bank being put under administration by the CBB, or
      2) Any Bank being put into liquidation

      in each case, such Bank hereinafter referred to as a "defaulting bank".