All Bahraini conventional bank licensees must obtain the CBB's approval prior to taking a "significant investment" (as described in CM-5.5.1E) in another commercial entity (whether incorporated inside or outside of Bahrain) and any future increases in the bank's ownership of any of the existing significant investments, which is equivalent to or more than 5% of such exposure. Banks must notify the CBB for any increase in the value of such ownership where it is due to reasons such as revaluation or change in the capital of the bank where the 800% risk weight rule will apply immediately on such increments. Any bank wishing to acquire a "significant investment" in another commercial entity must address the points outlined in Paragraph CM-5.10.10 of this Section so that the CBB may make an informed review of the request. Banks must submit such request to the CBB and the CBB shall respond within 2 weeks from the date of receiving a complete set of all the required documents. If the investment or aggregate of such investments exceeds the "significant investment" thresholds as outlined in Paragraph CA-2.4.25, then the excess amount over the threshold must be risk-weighted at 800%.
Amended: April 2015
Amended: January 2015
Amended: April 2014
Amended: July 2012
Amended: January 2012
Added: January 2011