• CA-1.1 CA-1.1 General Requirements

    • Minimum Capital Requirement

      • CA-1.1.1

        A licensee must maintain a minimum paid-up capital of BD5,000,000. A greater amount of capital may be required by the CBB on a case-by-case basis. A licensee offering a limited scope of short-term instalment credit activity may be allowed, as determined by the CBB, to maintain a lower capital based on the nature, scale and size of operations.

        Amended: July 2022
        January 2013

      • CA-1.1.2

        In addition to the requirements of Paragraph CA-1.1.1, the CBB may require that an acceptably worded letter of guarantee be provided in support of the application for a license. Where the application for the license is for an incorporated entity, the CBB may seek a letter of guarantee from the major shareholder in control of the licensee.

        January 2013

      • CA-1.1.3

        All licensees must implement the requirements of Paragraphs CA-1.1.1 and CA-1.1.2, effective January 2013.

        January 2013

    • Gearing Ratio

      • CA-1.1.4

        In addition to the requirements outlined in Paragraphs CA-1.1.1 and CA-1.2.1., all licensees must maintain a minimum gearing ratio of 20%.

        January 2013

      • CA-1.1.5

        For purposes of Paragraph CA-1.1.4, the gearing ratio is defined as the core capital divided by the total liabilities to be calculated on a consolidated basis.

        Amended: October 2014
        January 2013

    • Core Capital

      • CA-1.1.6

        Core capital shall consist of the sum of items (a) to (e) below, less the sum of items (f) to (h) below:

        (a) Issued and fully paid ordinary shares (net of treasury shares);
        (b) Share premium reserve;
        (c) Preference shares;
        (d) All disclosed reserves brought forward, that are audited and approved by the shareholders, in the form of legal, general and other reserves created by appropriations of retained earnings; and
        (e) Retained earnings (losses) brought forward, including reviewed interim profits;

        LESS:

        (f) Goodwill;
        (g) Current interim cumulative net losses; and
        (h) Other deductions, as specified by the CBB.
        Amended: October 2014
        January 2013

      • CA-1.1.7

        Only interim profits which have been reviewed as per IAS 34 may be included as core capital.

        Amended: October 2014
        January 2013

    • Liabilities

      • CA-1.1.8

        For purposes of Paragraph CA-1.1.5, liabilities are defined as the total amount of liabilities reported in the PIRF or PIRCC.

        January 2013

      • CA-1.1.9

        Licensees must ensure that at all times they maintain the minimum gearing ratio outlined in Paragraph CA-1.1.4. In the event that the licensee does not comply with the minimum gearing ratio, it must notify the CBB by no later than the following business day of the actual level of the gearing ratio. When providing such notification, the licensee must:

        (a) Provide to the CBB, within one week of the non-compliance, a written action plan setting out how the licensee proposes to restore its gearing ratio to the required minimum level and describe the systems and controls that have been put in place to prevent any future non-compliance of the minimum gearing ratio; and
        (b) Report to the CBB on a monthly basis or on another timely basis as required by the CBB, the licensee's gearing ratio until such time as the gearing ratio has reached 22% or other target level as specified by the CBB.
        January 2013

      • CA-1.1.10

        Licensees must note that the CBB considers the breach of the gearing ratio to be a very serious matter. Consequently, the CBB may (at its discretion) subject a licensee which breaches its gearing ratio to a formal licensing reappraisal. Such reappraisal may be effected either through the CBB's own inspection function or through the use of Reporting Accountants, as appropriate. Following such reappraisal, the CBB will provide a written notification to the licensee concerned outlining the CBB's conclusions with regard to the continued licensing.

        January 2013

    • Compliance Officer

      • CA-1.1.11

        The CBB requires that the licensee's compliance officer supports and cooperates with the CBB in the monitoring and reporting of the capital level and the gearing ratio and other regulatory reporting matters.

        January 2013

      • CA-1.1.12

        Compliance officers should ensure that the licensee has adequate internal systems and controls to comply with this Module.

        January 2013

    • Reporting Requirements

      • CA-1.1.13

        The licensee must report its capital level and gearing ratio to the CBB in accordance with the requirements outlined in Chapter BR-3.

        January 2013