CBB Proposes New Rulebook Modules for Conventional and Islamic Banks
CBB is proposing new risk management related modules to the Rulebook Volumes 1 and 2, along with additional requirements to an existing High-Level Controls Module (Module HC). The proposed 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). Comment period ends on June 05, 2018.
The descriptions of these modules are as follows:
- Module DS—Deals with the requirements to be fulfilled by all banks with regard to identifying systemically important banks (SIBs) and the specific obligations under the rules for the SIBs
- Module RR—Deals with risk management requirements for managing reputational risk
- Module ICAAP—Deals with key principles of the supervisory review process, risk management guidance, transparency, and accountability with respect to the banking risks
- Module ST—Deals with the key elements of an effective stress testing program
- Module HC—Introduces certain general risk management requirements under Section HC-6.6
CBB is introducing these new 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: June 05, 2018
Keywords: Middle East and Africa, Bahrain, Banking, Islamic Banking, D-SIBs, Stress Testing, ICAAP, CBB
Featured Experts
Emil Lopez
Credit risk modeling advisor; IFRS 9 researcher; data quality and risk reporting manager
James Partridge
Credit analytics expert helping clients understand, develop, and implement credit models for origination, monitoring, and regulatory reporting.
Nihil Patel
Data scientist; SaaS product designer; credit portfolio analyst and product strategist; portfolio modeler; correlation researcher
Previous Article
ECB Updates List of Supervised Entities in EU in October 2018Related 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.