CM-2.9 CM-2.9 Concentrations in Geographic, Economic and Market Sectors
CM-2.9.1
The extent to which a
licensee may be prudently exposed to a particular geographic, economic and market sectors will vary considerably, depending upon the characteristics and strategy of thelicensee , and the sector concerned.Added: June 2022CM-2.9.2
Concentrations should also be recognised in not just geographic and economic sectors but also in markets (e.g. individual stock exchanges). The CBB will not apply common maximum percentages to
licensees’ sectoral or marketexposures but, instead, will continue to monitor suchexposures on an individual and general basis.Added: June 2022CM-2.9.3
Bahraini conventional bank licensees must specify in their policy statements how they define geographic, economic and market sectors, and what limits apply to different sectors.Added: June 2022CM-2.9.4
Exposures and limits for sectors must be reviewed at least quarterly by the Board of Directors.Added: June 2022CM-2.9.5
Bahraini conventional bank licensees which have over 10 percent of their risk-adjusted assets in market risk (i.e. the trading book) must also set market risk concentration limits.Added: June 2022
