Regulatory Alerts2016-12-14
Proposed Amendments to the Credit Risk Management Module (CM) for Banks
The Central Bank of Bahrain mandates prior written approval for conventional banks making major acquisitions or investments equivalent to at least ten percent of their consolidated total capital. The revised Credit Risk Management Module clarifies that future ownership increases exceeding five percent of such exposures require regulatory consent, while capital revaluations trigger simple notification. Excess holdings beyond the single fifteen percent and aggregate sixty percent limits are automatically subject to an eight hundred percent risk weight, ensuring robust capital adequacy and supervisory oversight.
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