Regulatory Alerts2013-02-01
Volume 5 Draft Common and Specific Modules (CA & GR) for Financing Companies Licensees
The Central Bank of Bahrain issued this consultation paper to finalize draft General Requirements and Capital Adequacy modules for Financing Companies Licensees, incorporating industry feedback on record retention, controller reporting, and core capital definitions. The revised modules mandate a minimum 20% gearing ratio, require licensees to maintain comprehensive books and records for at least five years, and specify precise calculation methods for core capital including fair value reserves and interim profits. Licensees must promptly notify the CBB of any gearing ratio non-compliance, submit detailed controller and close-links reports within three months of year-end, and apply these standardized rules prospectively once the Volume 5 rulebook is published.