Regulatory Alerts2015-11-05
Proposed Changes to CBB Prior Approval Requirements for Writing Off Exposures
The Central Bank of Bahrain has proposed amendments to paragraph CM-7.1.3 requiring financial institutions to obtain prior written approval or a written no-objection before writing off specific credit exposures. The revised rules restrict the requirement to current approved persons of each bank, remove obligations for exposures tied to other licensees' controllers, and clarify procedures for social loans and consumer facilities. These changes eliminate the minimum materiality threshold to ensure all exposures linked to approved persons, controllers, or connected counterparties are assessed for credit-worthiness regardless of their value.
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