CM-3.1 CM-3.1 Financings to Employees
CM-3.1.1
The CBB’s prior written consent must be obtained for any financing to an employee where the amount of this financing exposure, either singly or when added to an existing financing exposure(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.
Islamic 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 an
Islamic 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 financing 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 financing 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
Islamic 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
