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DS-2.1.9

Bahraini conventional bank licensees must use quantitative and, if relevant, qualitative triggers in their recovery plans. The quantitative triggers focused on firm-specific liquidity and capital measures are critical. The quantitative triggers may include different elements such as:

(a) withdrawal of deposits and other funding;
(b) revenue performance (or components of these);
(c) ratings downgrades;
(d) credit risk limits;
(e) equity ratios;
(f) renewal of wholesale financing;
(g) increased collateral requirements;
(h) interest rate environment; and
(i) senior debt spreads.
July 2018