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  • PD-A PD-A Introduction

    • PD-A.1 PD-A.1 Purpose

      • PD-A.1.1

        The purpose of this Module is to set out the detailed qualitative and quantitative public disclosure requirements that the microfinance institutions should adhere to in order to enhance corporate governance and financial transparency through better public disclosure. Such disclosures also help to protect customers and facilitate market discipline.

        January 2014

      • PD-A.1.2

        ThisModule provides support for certain other parts of the Rulebook, namely:

        (a) Licensing and Authorisation Requirements;
        (b) CBB Reporting Requirements;
        (c) Risk Management;
        (d) High Level Controls;
        (e) Relationship with Audit Firms; and
        (f) Enforcement actions.
        January 2014

      • PD-A.1.3

        This Module also provides support for certain aspects relating to disclosure requirements stipulated in the Central Bank of Bahrain and Financial Institutions Law (Decree No. 64 of 2006) and the Bahrain Commercial Companies Law (as amended).

        January 2014

      • Legal Basis

        • PD-A.1.4

          This Module contains the Central Bank of Bahrain's ('the CBB') Directive (as amended from time to time) relating to public disclosure and is issued under the powers available to the CBB under Article 38 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'). It also incorporates the requirements of Article 62 (as amended from time to time) of the CBB Law with respect to the publication of financial statements. The Directive in this Module is applicable to all microfinance institution licensees.

          January 2014

        • PD-A.1.5

          For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1.

          January 2014

    • PD-A.2 PD-A.2 General Requirements

      • PD-A.2.1

        All microfinance institutions must have a formal disclosure policy as part of their overall communications strategy approved by the Board of Directors (and supported by documented procedures) that addresses the disclosures that the microfinance institution makes and the internal controls over the disclosure process. In addition, all microfinance institutions must carry out an annual review of the validity of their disclosures (in terms of scope and accuracy) as outlined in Modules BR and Paragraph AA-3.2.1.

        January 2014

      • PD-A.2.2

        All microfinance institutions are required to publish their annual audited financial statements per the rules set out in this Module and Article 62 of the CBB Law and the Bahrain Commercial Companies Law (as amended), where applicable. Such financial statements must be prepared in accordance with International Financial Reporting Standards (IFRS) in the case of conventional microfinance institutions or Financial Accounting Standards (FAS) issued by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) for Shari'a compliant licensees and for products and activities not covered by AAOIFI, by IFRS and IAS.

        January 2014

      • PD-A.2.3

        The CBB requires that each microfinance institution maintain an up-to-date checklist of all applicable accounting standards and also the disclosure requirements set out in this Module for full compliance purposes. Such checklists should be part of the microfinance institution's public disclosures procedures.

        January 2014

      • PD-A.2.4

        [This Paragraph was deleted in April 2014].

        Deleted: April 2014

      • PD-A.2.5

        The disclosures in this Module may be presented as an accompanying document or appendices to the Annual Report or in the Notes to the Financial Statements at the discretion of the concerned microfinance institution.

        January 2014

      • PD-A.2.6

        A microfinance institution should decide which disclosures are relevant for it based on the materiality concept and subject to the concurrence of the microfinance institution's external auditor. For the microfinance institutions' guidance, information would be regarded as material if its omission or misstatement could change or influence the assessment or decision of a user relying on that information for the purpose of making economic decisions.

        January 2014

      • PD-A.2.7

        Non-compliance with these disclosure requirements is likely to lead to enforcement actions as outlined in Module EN (Enforcement) such as a fine imposed by the CBB.

        January 2014

    • PD-A.3 PD-A.3 Module History

      • Evolution of Module

        • PD-A.3.1

          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

        • PD-A.3.2

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

          Module Ref. Change Date Description of Changes
          PD-A.2.4 04/2014 Deleted requirement for review by external auditor based on agreed upon procedures of disclosures specified under Module PD.
          PD-1.2.3 07/2018 Amended Paragraph on 'Publication of Annual Audited Financial Statements' time frame.
          PD-1.2.5 07/2023 Amended Paragraph on submission of newspaper extracts of financial statements.
               
               

      • Superseded Requirements

        • PD-A.3.3

          This Module supersedes the following provisions contained in circulars or other regulatory requirements:

          Document Ref. Document Subject
          Volumes 1 and 2 Module PD
          EDBS/KH/C/37/2018 Amendments to the Public Disclosure Module (PD)
          Amended: July 2018
          January 2014