CBB Outlines the 2020 Regulatory Policy Initiatives for Banking Sector

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