Featured Product

    CBB Proposes and Finalizes Rulebook Modules for Banks in August 2018

    August 16, 2018

    CBB issued consultations on leverage ratio requirements and high-level controls modules for conventional and Islamic banks. Responses to the consultations must be sent by September 16, 2018. CBB also finalized new requirements on the risk management related and the liquidity risk management modules to the Rulebook Volumes 1 and 2. The risk management related modules went into effect from July 2018.

    The following consultations and updates have been issued for conventional and Islamic banks in Bahrain:

    • CBB issued second consultation on the leverage ratio requirement Chapter (CA-10) for Islamic bank licensees and Chapter (CA-15) for conventional bank licensees. The consultation is for addition of leverage ratio requirements to the Module CA of Volumes 1 and 2. CBB requests all Bahraini bank licensees, audit firms, and law firms to provide their comments, including "nil comments" on these proposed requirements. Banks are also required provide CBB with an impact assessment and leverage measures.
    • CBB proposed amendments to Section HC-6.4 under the High Level Controls Module (Module HC) of Volumes 1 and 2 of the CBB Rulebook, which contains rules related to the compliance function in banks. CBB requests all banks, audit firms, and law firms to provide their comments, including "nil comments" on these proposed requirements. 
    • Following an industry consultation in April 2018, few risk management related modules to the Rulebook Volumes 1 and 2 have been issued. These modules include Domestic Systemically Important Banks Module (Module DS), Reputational Risk Management Module (Module RR), Internal Capital Adequacy Assessment Process Module (Module ICAAP), and Stress Testing Module (Module ST). The modules shall be available on CBB website under Volumes 1 and 2 in due course. These modules will be effective from July 2018. Annex to the notification letter sets out effective dates and the important deadlines that banks must comply with.
    • After consulting the industry, CBB issued the new requirements related to liquidity risk management in Module LM for both Rulebook Volumes 1 and 2. The new requirements incorporate qualitative principles for sound liquidity risk management and supervisions by the Basel Committee, along with the Basel III standards on liquidity coverage ratio (LCR) and net stable funding ratio (NSFR). While the qualitative principles in Chapter LM-1 to LM-10 apply to all banks, the requirements for monitoring and reporting LCR and NSFR apply only to Bahraini banks. Requirements in Chapters LM-1 to LM-11 must be fully met by June 30, 2019 and the requirements in Chapter 12 must be fully met by December 31, 2019. Bahraini banks shall continue report LCR and NSFR ratios under the current arrangements, until the new rules become applicable. The modules shall be available on CBB website under Volumes 1 and 2 in due course.

    CBB is proposing and adding these modules to the Rulebook Volumes 1 and 2, as part of the objective to enhance its regulatory framework and keep pace with the standards set by FSB and BCBS. Volume 1 contains guidance and directives for conventional banks whereas Volume 2 contains guidance and directives for Islamic banks.

     

    Related Links

    Comment Due Date: September 16, 2018

    Effective Date: July 2018

    Keywords: Middle East and Africa, Bahrain, Banking, Islamic Banking, Liquidity Risk, Capital Adequacy, Stress Testing, Leverage Ratio, CBB

    Featured Experts
    Related Articles
    News

    EBA Report on MREL Shows Progress in Resolution Planning

    EBA published the first quantitative report taking stock of the increased capacity of minimum requirements for own funds and eligible liabilities (MREL) in EU.

    February 17, 2020 WebPage Regulatory News
    News

    ESMA Updates Q&A on Credit Rating Agencies Regulation

    ESMA updated questions and answers (Q&A) document on the Credit Rating Agencies (CRA) Regulation.

    February 17, 2020 WebPage Regulatory News
    News

    EC Announces Funding for Sustainable Finance Project in France

    EC announced an investment for the latest projects, including a project on sustainable finance, under the LIFE program for the environment and climate action.

    February 17, 2020 WebPage Regulatory News
    News

    FDIC Releases Economic Scenarios for Stress Testing in 2020

    FDIC released the hypothetical economic scenarios for use in the upcoming stress tests for covered institutions with total consolidated assets of more than USD 250 billion.

    February 14, 2020 WebPage Regulatory News
    News

    EBA Acknowledges EC Adoption of Amended Supervisory Reporting Standard

    EBA acknowledged the adoption, by EC, of an Implementing Act with regard to the common reporting (COREP) and financial reporting (FINREP) changes, in accordance with the Capital Requirements Regulation or CRR.

    February 14, 2020 WebPage Regulatory News
    News

    APRA and ASIC Welcome Proposed Reforms for Superannuation Sector

    APRA and the Australian Securities and Investments Commission (ASIC) have jointly welcomed the proposed legislative reforms increasing the role of ASIC in the superannuation sector.

    February 14, 2020 WebPage Regulatory News
    News

    ESMA Responds to EC Consultation on Review of Benchmarks Regulation

    ESMA published its response to EC consultation on review of the Benchmarks Regulation in EU.

    February 14, 2020 WebPage Regulatory News
    News

    OSFI on Guide and Form for Replicating Portfolio Information Summary

    OSFI revised the instruction guide and form related to filing the Replicating Portfolio Information Summary.

    February 14, 2020 WebPage Regulatory News
    News

    FFIEC Publishes Guide to HMDA Reporting for Data Collected in 2020

    FFIEC issued the 2020 edition of guide to Home Mortgage Disclosure Act (HMDA) reporting for the data collected in 2020 and reported in 2021.

    February 13, 2020 WebPage Regulatory News
    News

    ISDA Guide on Smart Contracts for Equity and Interest Rate Derivatives

    ISDA has published the fourth and fifth installments in a series of legal guidelines for smart derivatives contracts.

    February 13, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4687