• RM-A RM-A Introduction

    • RM-A.1 RM-A.1 Purpose

      • RM-A.1.1

        This Module contains requirements relating to the management of risk by microfinance institution licensees.

        July 2014

      • RM-A.1.2

        This Module details the minimum key elements of a sound credit risk management system which the Central Bank of Bahrain ('CBB') requires its microfinance institutions licensees to observe. These minimum requirements reflect the unique environment within which microfinance institutions licensees operate and the range of products which they typically offer. However, the CBB, at its sole discretion, retains the right to impose more stringent requirements and guidelines upon one or more microfinance institution licensees should it consider such action to be in the best interest of the Bahrain financial system at any time.

        July 2014

      • RM-A.1.3

        This Module obliges microfinance institution licensees to identify and document the major risks that they face, and what action will be taken to manage those risks effectively. Effective compliance with this Module will require the risk management framework to be supported by adequate resources and the appropriate tools to identify, monitor and control all material risks.

        July 2014

      • RM-A.1.4

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

        (a) Principles of Business;
        (b) The CBB Reporting Requirements;
        (c) Auditors and Accounting Standards; and
        (d) High-level Controls.
        July 2014

      • Legal Basis

        • RM-A.1.5

          This Module contains the Central Bank of Bahrain's ('CBB') Directive (as amended from time to time) relating to the credit and operational risk management 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 institutions licensees.

          July 2014

        • RM-A.1.6

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

          July 2014

    • RM-A.2 RM-A.2 Module History

      • RM-A.2.1

        This Module was first issued in July 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.

        July 2014

      • Summary of Changes

        • RM-A.2.2

          The most recent changes made to this Module are detailed in the table below:

          Module Ref. Change Date Description of Changes
          RM-4.3.1 10/2017 Amended Paragraph.
          RM-4.4.3 10/2017 Amended Paragraph.
          RM-4.5.1(c) 10/2017 Amended sub-sub-Paragraph no. (2).
          RM-4.5.1(e) 10/2017 Amended sub-sub-Paragraph no. (3).
          RM-4.5.2 10/2017 Added a new paragraph for security measures related to cloud services.
          RM-4 07/2022 Replaced Chapter RM-4 with new Outsourcing Requirements.

      • Superseded Requirements

        • RM-A.2.3

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

          Document Ref. Document Subject
          Volumes 1 and 2 Modules CM and OM