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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 2006 (CBB Law).

          January 2014

        • CA-A.1.2

          Principle 9 of the Principles of Business requires that microfinance institution 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 the CBB's Authorised Conditions (Section AU-2.5) requires microfinance institution licensees to maintain financial resources in excess of the minimum requirements specified in this Module.

          January 2014

        • CA-A.1.3

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

          January 2014

        • CA-A.1.4

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

          January 2014

        • CA-A.1.5

          The CBB requires that microfinance institution licensees maintain adequate capital in accordance with the requirements of this Module, against their risks.

          January 2014

      • Legal Basis

        • CA-A.1.6

          This Module contains the CBB's Directive relating to the capital requirements and gearing of microfinance institution 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 microfinance institution licensees.

          January 2014

    • CA-A.2 CA-A.2 Module History

      • Evolution of Module

        • CA-A.2.1

          This Module was first issued in January 2014 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 2014

        • CA-A.2.2

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

          Module Ref. Change Date Description of Changes
          CA-1.1.4 and CA-1.1.5 10/2014 Updated capital requirements to be aligned with the term and definition of 'core capital'.
          CA-1.1.3 01/2019 Amended minimum Capital Adequacy ratio.
          CA-1.1.4 01/2019 Amended Paragraph defining Capital Adequacy ratio.
          CA-1.1.5A 01/2019 Added a new Paragraph on risk weighted asset items.
          CB-1.1.5B 01/2019 Added a new Paragraph on claims on banks.
          CB-1.1.5C 01/2019 Added a new Paragraph on short-term claims.
          CA-1.1.6 01/2019 Amended Paragraph on maintaining minimum CAR.
          CA-1.1.7 01/2019 Amended Paragraph.
          CA-1.1.8 01/2019 Amended guidance and changed to Rule.
          CA-1.1.9 01/2019 Amended Paragraph.
          CA-1.1.1 04/2019 Amended the minimum capital required.