Regulatory Alerts2021-04-22
Proposed Amendments to Liquidity Risk Management Module (Module LM)
The Central Bank of Bahrain proposes new Chapter requirements within its Liquidity Risk Management Module to establish a Loans to Deposit Ratio for conventional retail banks and a Financing to URIA and Current Account Ratio for Islamic retail banks. All addressed licensees must submit their feedback, including nil responses, electronically in an editable format to the designated consultation email. Submissions must be received by 22 April 2021 to finalize these regulatory updates.
# Executive Director - Banking Supervision
EDBS/KH/C/13/2021
25th March 2021
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## Chief Executive Officer
All Retail Banks
Manama
Kingdom of Bahrain
Dear Sir,
### Consultation: Proposed Amendments to Liquidity Risk Management Module (Module LM)
As part of CBB’s objective to further enhance its regulatory framework, CBB is proposing to introduce a new Chapter within Module LM of CBB Rulebook including requirements in respect of ‘Loans to Deposit Ratio’ for conventional retail bank licensees (Volume 1) and ‘Financing to URIA and Current Account Ratio’ for Islamic retail bank licensees (Volume 2).
CBB requires all licensees, to whom this circular is addressed, to provide their comments, including ‘nil comments’ on the proposed requirements.
The proposed requirements in Module LM will be available on the CBB website ([www.cbb.gov.bh](http://www.cbb.gov.bh)) under the “open consultations” section.
Responses must be sent electronically, in an editable format, to [consultation@cbb.gov.bh](mailto:consultation@cbb.gov.bh) by 22nd April 2021.
Yours faithfully,
Khalid Hamad Al-Hamad
cc: Bahrain Association of Banks
External Auditor
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**مصرف البحرين المركزي**
Central Bank of Bahrain
**ص.ب : ٢٧، المنامة - مملكة البحرين**
**هاتف : (+973) 17532605 - فاكس: (+973) 17547400**
P.O. Box : 27, Manama - Kingdom of Bahrain
Tel: (+973) 17547400 - Fax: (+973) 17532605
website: www.cbb.gov.bh
E-mail: khalid.hamad@cbb.gov.bh
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