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  • Deductions from Total Capital

    • CM-2.5.16

      The CBB will closely examine all exposures to ‘connected counterparties’ and will deduct them from the licensee’s consolidated total capital if they are, in the CBB's opinion, of the nature of a capital investment, or provision of long-term working capital, or are made on particularly concessionary terms.

      Added: June 2022

    • CM-2.5.17

      Reciprocal cross-holdings of capital between the licensee and its controllers (see GR-5) which artificially inflate the capital of licensee concerned are not permitted. Any cross-holdings that occur, due to acquisitions or takeovers, must be deducted from the concerned licensee’s total capital (see also CA-2).

      Added: June 2022

    • CM-2.5.18

      Any other form of lending to connected counterparties outside the scope of the above will be dealt with by the CBB on a case-by-case basis.

      Added: June 2022

    • CM-2.5.19

      Bahraini conventional bank licensees must perform valuations of collaterals covering large exposures to ensure that collaterals are, and continue to be, enforceable and realisable at least on an annual basis when market conditions are adverse.

      Added: June 2022