CM-2.1 CM-2.1 Overview
CM-2.1.1
The CBB’s directives on large
exposures forlicensees in Bahrain are issued as part of the CBB’s measures to encouragelicensees to mitigate risk concentrations and to design thelicensees’ large exposure framework so that the maximum possible loss thelicensee could incur, if a singlecounterparty or group of connectedcounterparties were to suddenly fail, would not endanger thelicensee’s survival as a going concern.Added: June 2022CM-2.1.2
The contents of this Chapter apply in full to all
Bahraini Islamic bank licensees on a consolidated basis.Added: June 2022CM-2.1.3
The application of the large exposures framework at the consolidated level implies that the
licensee must consider all exposures to third parties across the relevant regulatory consolidation group and compare the aggregate of those exposures with the group’s consolidated total capital.Added: June 2022CM-2.1.4
Bahraini Islamic bank licensees must report large exposures through the PIRI forms (see Module CA).Added: June 2022