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  • CM-A.1 CM-A.1 Purpose

    • Executive Summary

      • CM-A.1.1

        The purpose of this Module is to provide the Central Bank of Bahrain’s (CBB’s) Directive concerning requirements relevant to the key elements of a sound credit risk management system which it expects conventional bank licensees to observe.

        Added: June 2022

      • CM-A.1.2

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

        (a) High-level Controls;
        (b) Capital Adequacy;
        (c) Liquidity Risk;
        (d) Operational Risk;
        (e) Interest Rate Risk in the Banking Book;
        (f) Reputational Risk;
        (g) Credit Risk;
        (h) Stress Testing; and
        (i) Internal Capital Adequacy Assessment Process (‘ICAAP’).
        Added: June 2022

    • Legal Basis

      • CM-A.1.3

        This Module contains the CBB’s Directive (as amended from time-to-time) relating to credit risk management in conventional bank licensees and is issued under powers available to the CBB under Article 38 of the of the Central Bank of Bahrain and Financial Institutions Law (Decree No. 64 of 2006) (“CBB Law”). This Module is applicable to all conventional bank licensees. Branches of foreign bank licensees shall comply with the requirements in this Module unless stated otherwise under relevant paragraphs of the Module.

        Added: June 2022

      • CM-A.1.4

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

        Added: June 2022