CM-5.2.1

Islamic bank licensees are reminded of their obligation to implement a sound internal controls framework, including an effective credit culture (as outlined in Section CM-1.2).

CM-5.2.2

Islamic bank licensees which offer consumer finance facilities to residents of Bahrain must follow the Code of Best Practice on Consumer Credit attached as Appendix CM-2 in Part B of the Rulebook. Failure to adhere to the Code may result in enforcement action as outlined in Module EN.

CM-5.2.3

Islamic bank licensees are also reminded of their obligations to display and communicate charges and APRs clearly (as outlined in Section BC-4.3).

CM-5.2.4

The measures presented in this Chapter should be viewed as minimum standards, rather than best practice. They are aimed at encouraging prudent financing and full, frank and fair disclosures. These measures should be read in conjunction with the ‘Code of Best Practice on Consumer Credit and Charging’ which was agreed jointly between the CBB and the Bahrain Association of Banks (see Appendix CM-2).

Ongoing Effort by the CBB