Regulatory Alerts2014-01-28
Sound Remuneration Practices for Licensed Banks
The Central Bank of Bahrain has issued final remuneration rules for all licensed banks, mandating risk-aligned compensation frameworks that integrate fixed and variable pay components, mandatory deferral periods, claw-back provisions, and a BD100,000 salary floor. Licensees must conduct gap analyses and implement phased compliance measures while retaining the flexibility to tailor incentive structures to their specific risk profiles and business models. Industry feedback prompted the regulator to clarify key definitions, introduce transitional arrangements, and align domestic requirements with international Basel Committee standards without imposing a rigid one-size-fits-all approach.
Share