CBB published a list of regulatory banking reform initiatives that it plans to undertake in 2020. During the coming year, CBB plans to update and align with the Basel III standards its capital adequacy modules, disclosures standards, interest rate risk in the banking book rules, corporate governance rules, and supervisory review process.
The following are the expected proposed rules to be issued for consultation in 2020:
- Introduction of rules for digital only banks
- Part 2 of Capital Adequacy Module (to be revised as per Basel III credit risk standards)
- New requirements on Interest Rate Risk in the Banking Book, or IRRBB, for Volume 1 and Rate of Return Risk in the Banking Book for Volume 2
- Enhanced High-Level Controls Module in line with Basel corporate governance
- Updated Business Conduct rules in Volume 1 to be in line with Volume 2 relevant rules including introduction of rules on Client Assets
- Supervisory Review Process (part of Basel III)
- Public Disclosure Module, revised as per Basel III
- Redesigned license fees to take into account the regulatory and supervisory cost of CBB
- Introduction of E-KYC rules in Financial Crime Module
Related Link: Notification
Keywords: Middle East and Africa, Bahrain, Banking, Basel III, Work Plan, Pillar 1, Pillar 2, Pillar 3, CBB
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