November 15, 2018

CBB announced the issuance of new leverage ratio requirements under Module CA (Part 3) for Islamic (Chapter CA-10) and conventional bank licensees (Chapter CA-15). The revised CA modules that would include the leverage ratio requirements shall be available under the CBB Rulebook Volumes 1 and 2. CBB also published several consultations related to open banking, Module FC, and requirements for payment service providers (PSPs).

The following proposals, with varying consultation periods have been published:

  • Open Banking—Under Volume 5, CBB proposed a new Module OB, along with amendments to the existing rules on ancillary service providers (Module AU), general requirements (Module GR), and CBB reporting requirements (Module BR). Under Volumes 1 and 2, CBB proposed amendments to Module GR, Chapter 6 on Open Banking. Additionally, under Volumes 1, 2, and 5, CBB proposed amendments to the glossary of defined terms (Appendix). These proposals are based on practices of some of the leading financial centers and emphasis has been placed on high level of security and controls, as this initiative will lead to connecting banks, financing companies, card companies, and other licensees to institutions defined in the draft rules as account information services providers and payment initiation service providers that would use open application program interfaces (Open APIs) to obtain access to customers' accounts on the basis of customers providing consent for such access. The consultation on these proposals closes on November 25, 2018.
  • Module FC for Volumes 1 to 6—CBB Rulebook Volumes 1 and 2 require all banks to submit a report on the quality of a licensee's anti-money laundering procedures, systems, and controls and compliance with the AML Law and Module FC. The report is to be submitted annually by the licensee's external auditor or a consultancy firm approved by CBB. CBB has noted that some of the reports that are prepared and submitted lack depth and/or consistency and reliability. As part of the objective to establish industry leading practices, CBB is proposing the introduction of a template for the preparation of such reports and the conduct of appropriate procedures to form the basis of such reports. For Volumes 1 and 2, CBB requests all licensees, audit firms, and interested parties to submit comments, including "nil" comments, by December 02, 2018. For Volumes 3, 4, 5, and 6, CBB requests comments by December 13, 2018.
  • Requirements for PSPs—CBB proposed additions to the requirements in the Authorization Module (Module AU) under Section AU-1.2 and the General Requirements Module (Module GR) under a new Chapter GR-5B in the CBB Rulebook Volume 5 for Ancillary Service Providers; this is to accommodate for general issues and security measures for the PSPs that will have their own cash dispensing machines (CDMs) or kiosks to enable cash withdrawal, as part of the Wage Protection System. CBB requests all PSPs to provide comments, including "nil" comments, on the proposals by December 12, 2018.

 

Related Links 

Keywords: Middle East and Africa, Bahrain, Banking, PMI, Capital Adequacy, Leverage Ratio, Islamic Banking, AML, Payment Service Providers, Reporting, CBB

Related Articles
News

BoE, FCA, and MAS Announce Collaboration on Cyber Security

MAS and UK financial authorities (BoE and FCA) announced that they will work together to strengthen cyber security in their financial sectors.

June 13, 2019 WebPage Regulatory News
News

CBIRC Advisory Committee Holds Meeting, Discusses Regulatory Issues

The first meeting of the International Advisory Committee (IAC) of CBIRC was held in Shanghai from June 11 to 12, 2019.

June 13, 2019 WebPage Regulatory News
News

APRA Response to Proposal on Revisions to Capital Framework for Banks

APRA published a paper in response to the first round of consultation on proposed changes to the capital framework for authorized deposit-taking institutions.

June 12, 2019 WebPage Regulatory News
News

APRA Finalizes Schedule on Scope of Variable Remuneration Under BEAR

APRA has released a response letter and the final wording of the schedule in relation to how the Banking Executive Accountability Regime (BEAR) applies to variable remuneration arrangements for medium and small authorized deposit-taking institutions (ADIs).

June 12, 2019 WebPage Regulatory News
News

EC Publishes Fourth Progress Report on Reduction of NPLs in EU Banks

EC published the fourth progress report on the reduction of non-performing loans (NPLs) in banks in EU.

June 12, 2019 WebPage Regulatory News
News

FASB Adds Taxonomy Entry Points in Relation to 2019 DEI Taxonomy

FASB has incorporated additional entry points for the 2019 GAAP [Generally Accepted Accounting Principles] Financial Reporting Taxonomy and the 2019 SEC Reporting Taxonomy, in connection with the issuance of the 2019 Document and Entity Information (DEI) Taxonomy by SEC.

June 11, 2019 WebPage Regulatory News
News

EC Publishes Draft Equivalence Decisions for Credit Rating Agencies

EC is requesting feedback on the draft implementing decisions on recognition of legal and supervisory systems of Hong Kong, Japan, Mexico, and U.S. as equivalent to the requirements of Regulation (EC) No 1060/2009 on credit rating agencies.

June 11, 2019 WebPage Regulatory News
News

BaFin Consults on AFS Recommendation to Increase CCyB for Banks

BaFin is requesting feedback on increasing the domestic countercyclical capital buffer (CCyB) to 0.25%, with effect from July 01, 2019, pursuant to Article 92(3) of Capital Requirements Regulation (CRR).

June 11, 2019 WebPage Regulatory News
News

MAS Revises Capital Adequacy Requirements for Banks in Singapore

MAS issued amendments to the Notice 637 on risk-based capital adequacy requirements for banks incorporated in Singapore.

June 10, 2019 WebPage Regulatory News
News

PRA on Modification by Consent of Definition of Capital Rules in CRR 2

PRA announced its decision to offer a modification by consent of the Rules 7.1 and 7.5 of the Definition of Capital Part of the PRA Rulebook.

June 10, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3238