RegAlert

Consultation · CBB · 7 Feb 2021

Proposed Addition to Draft Regulation Governing Control in Bank Licensees

governance

The Central Bank of Bahrain (CBB) invites all bank licensees to review and submit comments on a proposed amendment to the Draft Regulation Governing Control in Bank Licensees. The new provision empowers the regulator to impose targeted restrictions when approving control, such as capping ownership stakes in non-listed banks, mandating board restructuring and independent director quotas, limiting related-party transactions, and aligning corporate governance frameworks. Licensees must electronically return their feedback, including nil responses, by 7 February 2020.

BahrainCentral Bank of Bahrain

Executive Director - Banking Supervision

EDBS/KH/C/03/2021
31st January 2021

Chief Executive Officer
All Bahraini Bank Licensees
Manama
Kingdom of Bahrain

Dear Sir/Madam,

Consultation: Proposed Addition to Draft Regulation Governing Control in Bank Licensees

Reference is made to CBB’s consultation dated 6th October 2019 (EDBS/KH/C/74/2019) on the Proposed Draft Regulation Governing Control in Bank Licensees. CBB is proposing to add a new provision to the said draft regulation.

All licensees to whom this circular is addressed, are requested to kindly review the new provision, see attached, and provide CBB with their comments, including ‘nil comments’. Responses must be sent electronically, in an editable format, to consultation@cbb.gov.bh by 7th February 2020.

The consultation letter shall be available on the CBB website (www.cbb.gov.bh) under the “open consultations” section.

Yours faithfully

Khalid Hamad Al-Hamad cc: Bahrain Association of Banks

New Provision Proposed to be added to the Draft Regulation Governing Control in Bank Licensees

يجوز للمصرف في حالة الموافقة على السيطرة فرض واحد أو أكثر من القيود الآتية:

  1. تقييد نسبة سيطرة الشخص الخاضع للرقابة في البنوك غير المدرجة في الأسواق المالية أو في حالات طلب الاندماج أو التملك بالكامل أو الاستحواذ، وذلك لأي نسبة يقدرها المصرف إذا كان من شأن ذلك الحفاظ على استقرار القطاع المالي.

  2. توجيه البنك بإعادة تشكيل مجلس إدارته.

  3. توجيه البنك بوضع حد أدنى لعدد الأعضاء المستقلين في مجلس الإدارة.

  4. وضع حدود للتعاملات البنك المالية مع الأطراف ذوي الصلة بالبنك بما فيهم المسيطر ومشاركيه.

  5. توجيه البنك بإجراء تعديل على نظام الحوكمة بما يتلاءم مع طبيعة السيطرة التي تم الموافقة عليها.

ص.ب: ٢٧، المنامة - مملكة البحرين
هاتف : (+973) 17547400 - فاكس: (+973) 17532605 P.O. Box : 27, Manama - Kingdom of Bahrain Tel: (+973) 17547400 - Fax: (+973) 17532605 website: www.cbb.gov.bh E-mail: khalid.hamad@cbb.gov.bh

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Mentions (1)a document this one mentionsopen the list below the graph ▾Mentions (1): a document this one mentions without changing it — open the list below the graphProposed Addition to DraftRegulation Governing Control …2021-02-07 · this documentProposed Addition to Draft Regulation Governing Control in Bank Licensees (2021-02-07)
amendssupersedesissued underrefers todashed card: not in RegAlert (or proposed)arrows run from the older text to the one that changes it
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