CRA-3 CRA-3 Minimum Capital Requirement
CRA-3.1 CRA-3.1 General Requirements
Obligation to Maintain Adequate Capital
CRA-3.1.1
Licensees are required to ensure that the minimum capital is paid into a retail bank licensed to operate in the Kingdom of Bahrain. They must provide, upon request, evidence to the CBB of the deposited amount.Amended: April 2023
Added: April 2019CRA-3.1.2
The minimum capital requirement comprising of paid-up share capital, unimpaired by losses, for respective category of
licensees are indicated in the table below:Minimum Capital Requirement
Sl. No. Licensing Category Minimum Capital (BD) 1. Category-1 25,000 2. Category-2 100,000 3. Category-3 200,000 4. Category-4 300,000 Added: April 2019CRA-3.1.3
In addition to the minimum capital requirements specified in CRA-3.1 onwards, the CBB may, at its discretion, require
licensees to hold additional capital in an amount and form as the CBB determines, should this be necessary (in the CBB's view) to ensure the financial integrity of thelicensee and its ongoing operations.Added: April 2019CRA-3.1.4
For the purposes of determining the additional amount of capital that must be maintained by a
licensee , the CBB may consider a variety of factors, including but not limited to:(a) the composition of thelicensee's total assets, including the position, size, liquidity, risk exposure, and price volatility of each type of crypto asset;(b) the composition of thelicensee's total liabilities, including the size and repayment timing of each type of liability;(c) the actual and expected volume of thelicensee's crypto asset business activity;(d) the liquidity position of thelicensee ;(e) the types of products or services to be offered by thelicensee ;(f) there is a change in the business of thelicensee that the CBB considers material;(g) thelicensee is exposed to risk or elements of risks that are not covered or not sufficiently covered by the minimum capital requirement;(h) the prudential valuation of the trading book is insufficient to enable thelicensee to sell or hedge out its position within a short period without incurring material losses under normal market conditions; and(i) thelicensee fails to establish or maintain an adequate level of additional capital to ensure that (i) cyclical economic fluctuations do not lead to a breach of the minimum capital requirement; or (ii) the capital requirement can absorb the potential losses and risks.Amended: April 2023
Added: April 2019CRA-3.1.5
In the event that a
licensee fails to meet any of the requirements specified in this Section, it must, on becoming aware that it has breached the minimum capital requirements, immediately notify the CBB in writing. Unless otherwise directed, thelicensee must in addition submit to the CBB, within 30 calendar days of its notification, a plan demonstrating how it will achieve compliance with these requirements.Added: April 2019CRA-3.2 CRA-3.2 Key Requirements
CRA-3.2.1
Licensees dealing incrypto assets as principal and thereby taking proprietary positions incrypto assets must ensure that their proprietary positions (at cost) do not exceed 50% of the paid-up capital or net shareholders' equity, whichever is lower.Amended: April 2023
Added: April 2019CRA-3.2.2
[This Paragraph was deleted in April 2023].
Deleted: April 2023
Added: April 2019CRA-3.2.3
Pursuant to Article 57(a) of the CBB Law, a
licensee must seek CBB approval before making any modification to its issued or paid-up capital. In the case that alicensee has been granted approval to increase its paid-up capital, confirmation from its external auditor stating that the amount has been deposited in thelicensee's bank account will subsequently be required.Amended: April 2023
Added: April 2019CRA-3.3 CRA-3.3 Additional Requirements
CRA-3.3.1
A
licensee's liquid assets must be held in a form acceptable to the CBB, in a minimum amount of three months estimated expenditures including salaries, rent, general utilities and other operating costs.Added: April 2019CRA-3.3.2
Liquid assets comprise of cash, cash equivalents, and placements or deposits maturing within 30 days.
Added: April 2019