AU-3.4.2

Past version: Effective from 01 Oct 2007 to 31 Dec 2010
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Before granting its approval for Bahraini conventional banks to use internal models for the measurement of market risk in the context of regulatory capital calculations, the CBB requires such models to be validated by both the internal and external auditors of the bank (see Chapter CA-9). The Central Bank will review the validation procedures performed by the internal and external auditors, and may independently carry out further validation procedures.

October 07