Regulatory Alerts2023-07-24
Insurance Costs on Loans and Financings
The Central Bank of Bahrain proposes new insurance cover requirements for loans and financing under Module BC of its Rulebook, applying to both conventional and Islamic retail banks. These amendments establish specific coverage standards that financial institutions must implement to align with enhanced regulatory framework expectations. Banks are required to submit their feedback, including nil comments, in editable format via email by 24 July 2023.
Central Bank of Bahrain
مَحْكُمَةُ البحرين المركزيّة
OG/221/2023
26th June 2023
Chief Executive Officer
All Retail Banks
Manama
Kingdom of Bahrain
Dear Sir/Madam,
**Consultation: Insurance Cover on Loans/Financing**
As part of the CBB’s initiatives to further enhance its regulatory framework, the CBB is hereby proposing new requirements with regards to insurance cover on loans and financing in the Business and Market Conduct Module (Module BC) under the CBB Rulebook – Volumes 1 and 2 for conventional and Islamic banks respectively.
The proposed requirements under Module BC shall be available on the CBB website (www.cbb.gov.bh) under the “Open Consultations” Section.
The CBB requests you to provide your comments, including ‘nil comments’ on the proposed amendments in an editable format to consultation@cbb.gov.bh by 24th July 2023.
Yours faithfully,
Rasheed M. Al Maraj
Governor
cc: External Auditors
هاتف +973 1754 7000، فاكس +973 1753 7799، ص.ب 27، المنامة، مملكة البحرين
T +973 1754 7500, +973 1754 7555, F +973 1753 7799, P.O. Box 27, Manama, Kingdom of Bahrain, www.cbb.gov.bh
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