Regulatory Alerts2025-04-17
Proposed Amendments to the Credit Risk Management Module
The Central Bank of Bahrain has issued a consultation proposing amendments to its Credit Risk Management Module, which will replace existing large exposure and connected counterparty requirements for all Bahraini bank licensees. The revised framework introduces a new large exposure limit of twenty-five percent, rationalizes exempt exposures, and mandates a uniform methodology for calculating capital add-ons related to credit concentration risk. Licensees must submit completed consultation questionnaires detailing the impact on their capital adequacy and credit strategies by 17 April 2025.
Share