• Chapter 2 Chapter 2 Capital and General Reserve

    • Article (11) Capital

      (a) The authorized capital of the Central Bank shall be Bahraini Dinars Five hundred million (BD 500,000,000).
      (b) The paid up capital of the Central Bank shall be Bahraini Dinars Two hundred million (BD 200,000,000).
      (c) The authorized capital and the paid up capital may be increased by a royal decree.
      (d) The Government shall pay the capital of the Central Bank in full and shall be the sole owner thereof.

    • Article (12) General Reserve

      (a) The Central Bank shall maintain on its books an account designated as the "General Reserve" which shall be credited with percentages of its net profits at the end of each financial year in the following order:
      1. 100% of the Bank's net profit until the amount of the general reserve reaches 25% of the authorized capital of the Central Bank.
      2. 50% of the net profit until the amount of the general reserve is equal to the authorized capital of the Central Bank.
      3. 25% of the net profit until the amount of the general reserve is double the amount of the authorized capital of the Central Bank.
      (b) Any net profit remaining after such allocation in accordance with the preceding paragraph and Article 21 of this law, shall be transferred to the Kingdom's general account within three months of the date of approval of the Bank's final accounts.
      (c) The Board may decide at any time to increase the amount of the general reserve over the amount stipulated in this Article.
      (d) In implementing the rules of this Article and Article (21) of this law, the term "Net Profits" means the net profits of the Bank in a specific financial year according to the approved final accounts.
      (e) The Board may approve payments from the general reserve at such times and for such purposes as it determines.