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  • 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 2019

    • CRA-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 2019

    • CRA-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 the licensee and its ongoing operations.

      Added: April 2019

    • CRA-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 the licensee's total assets, including the position, size, liquidity, risk exposure, and price volatility of each type of crypto asset;
      (b) the composition of the licensee's total liabilities, including the size and repayment timing of each type of liability;
      (c) the actual and expected volume of the licensee's crypto asset business activity;
      (d) the liquidity position of the licensee;
      (e) the types of products or services to be offered by the licensee;
      (f) there is a change in the business of the licensee that the CBB considers material;
      (g) the licensee 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 the licensee to sell or hedge out its position within a short period without incurring material losses under normal market conditions; and
      (i) the licensee 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 2019

    • CRA-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, the licensee 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 2019