CA-2.5.4
To clarify the effect of these minimum ratios (as identified in Paragraphs CA-2.5.1 to CA-2.5.3) on differing banking groups and individual banks, four examples (see Appendix CA-1) are given. In the examples, the parent and the subsidiary are Bahrain incorporated banks, but the cases could apply to overseas incorporated subsidiaries (with adjustment to the minimum RAR where appropriate in individual cases).
(a) Case One: Compliant solo bank - No subsidiaries (PIR only).
(b) Case Two: Compliant parent bank, compliant group (PIR and PIRC).
(c) Case Three: Compliant parent bank, compliant subsidiary bank, but non - compliant group.
(d) Case Four: Non - compliant parent bank, compliant subsidiary bank and compliant group.
For detailed workings of the above cases, refer to Appendix CA-1.
October 07