Regulatory Alerts2023-12-13
Total Repayments Ratio and Maximum Tenor Limit
The Central Bank of Bahrain proposes amendments to Section CM-5.4 of its Credit Risk Management Module, requiring retail banks and financing companies to automatically restructure eligible consumer finance facilities into a maximum ten-year tenor. Institutions must obtain customer acceptance via email or SMS, ensure the restructuring does not trigger a stage two downgrade, and maintain existing interest rates while applying permitted reschedule fees. The revised tenor calculation incorporates previously elapsed loan periods, excludes stage three exposures, and invites stakeholder feedback by 13 December 2023.
Share