CM-3.1 CM-3.1 Loans to Employees
CM-3.1.1
The CBB’s prior written consent must be obtained for any loan to an employee where the amount of this loan, either singly or when added to an existing loan(s) outstanding to that employee at that date, would be equal to or in excess of BD 100,000, or its equivalent in foreign currency.
Conventional bank licensees must notify the CBB in writing of any senior employee who fails to discharge his repayment obligations.Added: June 2022CM-3.1.2
Where a
conventional bank licensee seeks the CBB’s prior approval, as required under Paragraph CM-3.1.1, in its request it must confirm that the employee loan is in line with thelicensee’s Board-approved policy. The request must also confirm that thelicensee has made an internal assessment and evaluation when reaching the decision to grant the employee loan and that all necessary internal approvals have been obtained. Thelicensee must also obtain the necessary credit reference information from the Bahrain Credit Reference Bureau.Added: June 2022CM-3.1.3
Conventional bank licensees must ensure that the provisions of relevant laws (including, specifically, the Bahrain Labour Law) are observed at all times in this regard.Added: June 2022
