LM-3 LM-3 Other Requirements
LM-3.1 LM-3.1 Contingency Planning
LM-3.1.1
Licensees must have in place a formal contingency plan that clearly sets out their strategies for addressing liquidity shortfalls in emergency situations. The results of stress tests should also play a key role in shaping thelicensee's contingency planning and in determining the strategy and tactics to deal with events of liquidity stress.January 2014LM-3.2 LM-3.2 Liquidity Reporting Requirements
LM-3.2.1
Licensees must report theirstock liquidity ratio andmaturity mismatch ratios on a quarterly basis to the CBB, in accordance with the requirements outlined in Chapter BR-1.3.January 2014LM-3.3 LM-3.3 Bonds Issued by Licensee
LM-3.3.1
In accordance with Article 141 of the Bahrain Commercial Companies Law,
licensees must comply with the statutory requirement whereby the total value of existing bonds issued by thelicensee must not exceed the issued and fully paid up capital and the undistributed reserves according to the latest balance sheet approved at the annual general meeting. This statutory requirement does not apply to bonds guaranteed by the state or by one of the public entities and bonds issued by financial institutions regulated by the CBB, and with the approval of the CBB.January 2014