Regulatory Alerts2014-08-17
Final Basel 3 Rulebook Module CA for Islamic Banks (Volume 2)
The Central Bank of Bahrain issues capital adequacy rules requiring all licensed Islamic banks to maintain minimum solo and consolidated Capital Adequacy Ratios against credit, market, and operational risks. The January 2015 implementation introduces Basel III transitional arrangements that phase in stricter capital buffers and regulatory deductions by 2019 while accommodating Profit Sharing Investment Accounts through specific risk-weighted asset adjustments. These requirements ensure sufficient capital buffers to absorb unexpected losses and protect depositors across varying risk profiles.
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