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  • CM-4 CM-4 Write-off – Credit Facility

    • CM-4.1 CM-4.1 Write-offs

      • CM-4.1.1

        Bahraini conventional bank licensees must notify the CBB of any write-off of an exposure of an amount in excess of BD 100,000, or its equivalent in foreign currency.

        Added: June 2022

      • CM-4.1.2

        Such notification should be accompanied by documentary evidence showing, beyond reasonable doubt, that the customer does not possess the resources to fulfil the outstanding obligation.

        Added: June 2022

      • CM-4.1.3

        Bahraini conventional bank licensees must obtain the CBB’s written no-objection before writing-off any of the following:

        (a) Exposures to, or exposures guaranteed by, any approved person of the licensee or any other CBB licensee;
        (b) Exposures to controllers, subsidiaries, associates and SSB members of the licensee;
        (c) Exposures to any business entity for which the licensee, or any of its approved persons, is a related party, such as a Board member, a shareholder owning 5 percent or more, a person assuming a managerial role, a guarantor, a SSB member, etc.; and
        (d) Exposures to any controller of another CBB licensee (as defined in Resolution No. (16) of 2021 with respect to promulgating the Regulation Pertaining to Control in Banks).
        Amended: January 2023
        Added: June 2022

      • CM-4.1.4

        Branches of foreign bank licensees must obtain the CBB’s written no-objection before writing off the exposures listed in CM-4.1.3 from (a) to (d) except for (b).

        Added: June 2022

      • CM-4.1.5

        Bahraini conventional bank licensees must notify the CBB of any applicable exposures outlined in Paragraph CM-4.1.3 that are classified as NPLs.

        Added: June 2022

      • CM-4.1.6

        In order to comply with Sub-paragraphs CM-4.1.3 (a) and (d), conventional bank licensees should refer to the CBB register on the CBB website, which contains a list of approved persons and controllers of all CBB licensees.

        Added: June 2022