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  • CA-A CA-A Introduction

    • CA-A.1 CA-A.1 Purpose

      • Executive Summary

        • CA-A.1.1

          The purpose of this module is to set out the CBB's regulations for minimum capital requirements. This requirement is supported by Article 44(c) of the Central Bank of Bahrain and Financial Institutions Law (Decree No. 64 of 2006).

          January 2013

        • CA-A.1.2

          Principle 9 of the Principles of Business requires that financing company licensees maintain adequate human, financial and other resources, sufficient to run their business in an orderly manner (see Section PB-1.9). In addition, Condition 5 of CBB's Authorised Conditions (Section AU-2.5) requires financing company licensees to maintain financial resources in excess of the minimum requirements specified in this Module.

          January 2013

        • CA-A.1.3

          This Module sets out the minimum capital requirements which financing company licensees must meet as a condition of their licensing.

          January 2013

        • CA-A.1.4

          The purpose of these requirements is to ensure that financing company licensees hold sufficient financial resources to provide some protection against unexpected losses.

          January 2013

        • CA-A.1.5

          The CBB requires in particular that the relevant financing company maintain adequate capital in accordance with the requirements of this Module, against their risks.

          January 2013

        • CA-A.1.6

          This module provides support for certain other parts of the Rulebook, mainly:

          (a) Prudential Consolidation and Deduction Requirements;
          (b) Licensing and Authorisation Requirements;
          (c) CBB Reporting Requirements;
          (d) Credit Risk Management;
          (e) Operational Risk Management;
          (f) High Level Controls:
          (g) Relationship with Audit Firms; and
          (i) Penalties and Fines.
          January 2013

      • Legal Basis

        • CA-A.1.7

          This Module contains the CBB's Directive relating to the capital requirements and gearing of financing company licensees, and is issued under the powers available to the CBB under Article 38 of the CBB Law. The Directive in this Module is applicable to all financing company licensees.

          January 2013

    • CA-A.2 CA-A.2 Module History

      • Evolution of Module

        • CA-A.2.1

          This Module was first issued in January 2013 by the CBB. Any material changes that have subsequently been made to this Module are annotated with the calendar quarter date in which the change was made: Chapter UG-3 provides further details on Rulebook maintenance and version control.

          January 2013

        • CA-A.2.2

          A list of recent changes made to this Module is provided below:

          Module Ref. Change Date Description of Changes
          CA-1.1.5 10/2014 Clarified that gearing ratio is to be calculated on a consolidated basis.
          CA-1.1.6 10/2014 Amended definition of core capital.
          CA-1.1.1 07/2022 Amended Paragraph on the minimum capital requirement for licensees offering a limited scope of short-term instalment credit activity.
               
               

        • CA-A.2.3

          Guidance on the implementation and transition to Volume 5 (Specialised Licensees) is given in Module ES (Executive Summary).

          January 2013