Draft Resolution Amending Resolution No. (34) of 2010 with respect to issuing the Deposit Protection Scheme Regulation

Proposed Amendments to Certain Articles of Resolution No. (34) of 2010 Issuing the Regulation on the Deposit Protection Scheme and Maturity Investment Accounts

1. The text of Article (14) of the Regulation on the Deposit Protection Scheme and Maturity Investment Accounts issued pursuant to Resolution No. (34) of 2010 ("the Regulation") is replaced with the following:
(a) Conventional banks shall collectively contribute an amount determined and collected in accordance with the mechanism approved by the Council, and such funds shall be allocated to the Conventional Banks Fund.
Islamic banks shall collectively contribute an amount determined and collected in accordance with the mechanism approved by the Council, and such funds shall be allocated to the Islamic Banks Fund.
When collecting the amounts referred to in this clause, consideration shall be given to all funds existing in each of the two Funds that were collected under the provisions of this Article prior to its amendment.
(b) The Council shall conduct annual evaluations of the size of the funds in both the Conventional and Islamic Banks Funds relative to the obligations required to be covered, and shall submit recommendations to the Bank as needed regarding increasing or decreasing the funds of both Funds. No amendments may be made to the amount of either Fund without explicit approval from the Bank.

2. A new clause numbered (2) is added to the text of Article (15) of the Regulation, with renumbering of the clauses of the Article, and its text is as follows:
2. In the event that a bank's license changes from conventional to Islamic, or vice versa, the transfer of the bank's specific contribution funds located in one Fund to the other Fund shall be carried out, as applicable, in accordance with the rules and mechanism determined by the Council.