CA-1 CA-1 Capital Adequacy Requirements
CA-1.1 CA-1.1 General Requirements
Obligation to Maintain Adequate Capital
CA-1.1.1
In accordance with Principle of Business 9 (Section PB-1.1.9),
licensees must maintain adequate human, financial and other resources sufficient to run their business in an orderly manner.October 2010CA-1.1.2
Licensees are required to maintain, at all times, the minimum capital requirement specified in Section CA-1.2.October 2010CA-1.1.3
In addition to the minimum capital requirements specified in Section CA-1.2 onwards, the CBB may, at its discretion, require
licensees to hold additional capital, should this be necessary (in the CBB's view) to meet additional liquidity requirements. (refer to CA-1.5.2)October 2010CA-1.1.4
No funds may be withdrawn by shareholders from the
licensee without the necessary prior written approval of the CBB.October 2010CA-1.1.5
In the event that a
licensee fails to meet any of the requirements specified in this Module, it must, on becoming aware that it has breached these requirements, immediately notify the CBB in writing. Unless otherwise directed, thelicensee must in addition submit to the CBB, within 30 calendar days of its notification, a plan demonstrating how it will achieve compliance with these requirements.October 2010CA-1.1.6
Should a
licensee fail to comply with the requirements of this Module, the CBB may impose enforcement measures, as described in Module EN.October 2010CA-1.2 CA-1.2 Minimum Capital Requirements
Key Requirements
CA-1.2.1
Licensees must ensure that, at all times, their Minimum Capital meets the requirement stipulated in Rule CA-1.2.2 below.October 2010CA-1.2.2
Minimum Capital Requirements are:(a) Paid-up Capital of not less than BD500,000;(b) Additional Paid-up Capital of BD30,000 for each branch; and(c) A Bank Guarantee of not less than BD50,000.Amended: January 2011
October 2010CA-1.2.3
For those
licensees authorised prior to 1st January 2011, the minimum paid-up capital noted in Subparagraph CA-1.2.2 (a) must be not less than BD200,000. In addition, such licensees must comply with Subparagraphs CA-1.2.2 (b) and (c).January 2011CA-1.3 CA-1.3 Guarantee Requirements
CA-1.3.1
Licensees are required to provide the CBB with a guarantee in respect of their liabilities. The guarantee must be:a) In favor of and callable by the CBB at the CBB's sole discretion;b) Unconditional and irrevocable;c) Issued by a retail bank licensed by the CBB;d) Valid at all times for a period of one year; ande) Renewed at least one week before its expiry and submitted to the CBB.October 2010CA-1.3.2
If the guarantee is not renewed within the stipulated timeframe, the CBB may call the guarantee.
October 2010CA-1.4 CA-1.4 Capital Requirement for Branches
CA-1.4.1
In addition to the minimum paid-up capital required under Section CA-1.2,
licensees must inject capital in the amount of BD30, 000 in respect of any additional branch (see CA-1.2.2 for additional details).Amended: July 2011
Amended: January 2011
October 2010CA-1.4.2
Licensees must provide the CBB with evidence of the deposited amount of capital as part of the application for a branch outlined in Section 4.2 of the Module AU (Authorisation).October 2010CA-1.5 CA-1.5 Additional Requirements
CA-1.5.1
A
licensee 's liabilities should not exceed threefold its capital and reserves.October 2010CA-1.5.2
A
licensee 's liquid assets must be held in a form acceptable to the CBB, in a minimum amount of three months estimated expenditures including salaries, rent, general utilities and other operating costs.October 2010CA-1.5.3
Liquid assets comprise of cash, cash equivalents, and placements or deposits maturing within 30 days.
October 2010
