CM-1.9 CM-1.9 Provisioning Policies of Branches of Foreign Bank Licensees
CM-1.9.1
Specific provisions for impaired assets (i.e. Stage 3 accounts) and, where applicable, collective provisions (i.e. Stage 1 and Stage 2) representing ECL on performing exposures of
branches of foreign bank licensees must be maintained in the books of the Bahrainbranch .Added: June 2022CM-1.9.2
If a
branch of foreign bank licensee which is awholesale bank licensee is not able to meet the requirement in Paragraph CM-1.9.1, thebranch 's head office must advise the CBB, on an annual basis and in writing, whether an equivalent or higher amount of specific and collective provisions related to the exposures of its Bahrainbranch are being maintained by the head office. In all cases, thebranch must maintain and make available all underlying details of such provision calculations at the request of its external auditors and the CBB. The provisions maintained at the head office in relation to exposures of thebranch must be disclosed in the financial statements of thebranch submitted to the CBB.Added: June 2022CM-1.9.3
In addition, the CBB may contact the
licensee’s home supervisor , on a regular or ad hoc basis, in order to obtain information about the adequacy of the provisioning for such assets or may require thelicensee to provide additional comfort or assurance, e.g. through external auditors, that such provisions are indeed set aside properly.Added: June 2022
