Back Custom print Link Text Only Rich Text Print

  • ES-A.1 ES-A.1 Purpose

    • Executive Summary

      • ES-A.1.1

        The purpose of this Module is to:

        (a) Provide an overview of the structure of Volume 3 (Insurance);
        (b) Provide a summary of each Module; and
        (c) Outline the transition rules for the implementation of the Volume 3.
        Amended: January 2007

      • ES-A.1.2

        The Central Bank of Bahrain ('CBB'), in its capacity as the regulatory and supervisory authority for all financial institutions in Bahrain, has as its mission:

        (a) To ensure monetary and financial stability in the Kingdom of Bahrain; and
        (b) To regulate, develop and maintain confidence in the financial sector.
        Amended: January 2007

      • ES-A.1.3

        As the single regulator, the CBB ensures the consistent application of regulatory standards in banking, insurance and capital markets, as well as encourages an open and cooperative approach in dealing with financial institutions.

        Amended: January 2007

      • ES-A.1.4

        The supervision of the insurance sector in the Kingdom pays particular regard to the standards set by the International Association of Insurance Supervisors (IAIS). The CBB plays an important role in meeting stakeholders' expectations — the principal stakeholders of the CBB are the Government of the Kingdom of Bahrain, the regulated financial institutions, the consumers, the IAIS and several other international organizations.

        Amended: January 2007

      • ES-A.1.5

        To carry out its responsibilities in relation to the insurance sector, the CBB has four supervisory objectives, namely to:

        (a) Promote the stability and soundness in the insurance system;
        (b) Provide an appropriate degree of protection to insurance company policyholders;
        (c) Promote transparency and market discipline; and
        (d) Reduce the likelihood of insurance licensees being used for financial crime (including money laundering activities).
        Amended: January 2007

    • Legal Basis

      • ES-A.1.6

        This Module contains the CBB's (as amended from time to time) Directive relating to transition rules and is issued under the powers available to the CBB under Article 38 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'). The Directive in this Module is applicable to all insurance licensees (including their approved persons).

        Amended: January 2011
        Amended: January 2007

      • ES-A.1.7

        For an explanation of the CBB's rule-making power and different regulatory instruments, see Section UG-1.1.

        Amended: January 2007