CM-2.6.10
Under the terms of this Module (see Sub-Paragraph CM-2.6.2(f)), such indirect exposures to a parent bank may be exempted from the limits on large exposures if the CBB is satisfied that:
(a) Such exposures have been pre-notified to the CBB for the CBB's approval and are entered into within the terms of a policy agreed by the parent bank;
(b) There are guarantees in place from the parent bank to protect the subsidiary should the exposure become impaired or require to be written off; and
(c) In the case of licensees which are the Bahrain subsidiaries of overseas licensees , the supervisory authority of the parent bank has approved the exposures that can be undertaken by the Bahrain subsidiary.
Added: June 2022