CBB Proposes Changes to Rules on Non-Performing Exposures
The Central Bank of Bahrain (CBB) proposed amendments to the requirements on recategorization of certain non-performing exposures as performing under the Credit Risk Management (CM) Modules, with the consultation period ending on January 05, 2023.
CBB issued a letter to all the retail banks and financial institutions requesting comments on this consultation, which is a part of the Credit Risk Management (CM) Modules under the CBB Rulebook Volume 1 (Conventional Banks) and Volume 2 (Islamic Banks). As stated in the draft modules, an exposure ceases to be non-performing and can be recategorized as performing when all the following criteria are met simultaneously:
- The counterparty does not have any exposures that are past due for 90 days or more.
- For corporates, repayments have been made when due over a continuous repayment period of at least six months for facilities with monthly or quarterly instalments and twelve months for facilities with annual or semi-annual instalments, for corporate customers. For retail customers, repayments have been made when due over a continuous repayment period of at least three months for facilities with monthly instalments and at least six months for facilities with quarterly instalments.
Related Links
- Consultation Letter (PDF)
- CM Module Amendment for Conventional Banks (PDF)
- CM Module Amendment for Islamic Banks (PDF)
Keywords: Middle East and Africa, Bahrain, Banking, Credit Risk, Credit Risk Management, Basel, Islamic Banking, NPE, Impairment Guidance, CBB
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
MNB Sets CCyB, Fines Exim Bank, and Conducts Cyber Reporting PilotRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.