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  • Tier 1 Capital

    • CA-2.1.5

      Tier 1 capital comprises:

      (a) Paid-up ordinary shares (net of treasury shares);
      (b) Share premium reserve;
      (c) Perpetual non-cumulative preference shares;
      (d) General reserves, including statutory reserves, but excluding revaluation reserves;
      (e) Unappropriated retained earnings brought forward;
      (f) Audited retained profits net of declared dividends and tax expenses;
      (g) Current year appropriations including statutory reserves, general reserves and other appropriations; and
      (h) Minority interests, arising on consolidation, in the equity of subsidiaries which are less than wholly owned.

      LESS:

      (i) Goodwill; and
      (j) Current year's cumulative net losses which have been reviewed or audited as per the International Standards on Auditing (ISA) by external auditors.
      Amended: October 2009
      Amended: January 2008
      Amended: January 2007

    • CA-2.1.6

      Tier 1 capital elements included under Paragraph CA-2.1.5(a) to (c) can only be so included if:

      (a) They are issued by the investment firm licensee;
      (b) They are fully paid (only that portion of the shares for which payment has been received may be included);
      (c) They:
      (i) Cannot be redeemed or can only be redeemed on a winding up of the investment firm licensee; or
      (ii) They are only redeemable at the option of the investment firm licensee and comply with any conditions applicable to joint stock companies in Bahrain;
      (d) Any coupon is non-cumulative, and can only be paid out of accumulated realised profits;
      (e) They are able to absorb losses;
      (f) They rank for repayment, upon winding up, no higher than a share of a company incorporated under the Joint Stock companies law of Bahrain; and
      (g) The proceeds of the issue are immediately and fully available to the investment firm licensee.
      Amended: January 2007

    • CA-2.1.7

      An investment firm licensee must not redeem any Tier 1 instrument that it has included in its Regulatory Capital for the purpose of satisfying its Regulatory Capital Requirement without the prior written approval of the CBB.

      Amended: January 2007