CM-4.5.2
Past version: Effective from 01 Oct 2007 to 31 Dec 2010
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These exemptions fall into the following categories and are subject, in each case, to the policy statement as agreed with the CBB:
(a) Islamic bonds/ Sukook issued or guaranteed by the Government of Bahrain or its Agencies;
(b) Islamic bonds/ Sukook issued or guaranteed by the IDB;
(c) Short term (one year or less) interbank exposures;
(d) Exposures to GCC governments, and their Public Sector Entities that do not operate on commercial basis;
(e) Exposures to OECD central governments;
(f) Exposures secured on cash or GCC government securities/guarantees;
(g) Exposures secured on OECD central government securities/guarantees;
(h) Certain connected exposures, in particular those arising from a group treasury function;
(i) Exposures which are covered by a guarantee from the bank's parent (see Paragraph CM-4.5.8);
(j) Exposures arising from underwriting activities, such exposures continuing for no more than 90 calendar days. Any residual holdings of securities for more than 90 days from the commitment date of underwriting are no longer exempt and would be subject to normal large exposure limits;
(k) Exposures where the bank is acting as agent for an investor in a single purpose, non-discretionary capacity, and the bank has the full right to set-off losses and costs against any funds provided by the investor (examples might include real estate investments); and
(l) Syndicated facilities being financed by restricted investment accounts where the investor is fully aware of the type of investment and the associated risks.
October 07