Central Bank of Bahrain

Executive Director - Banking Supervision

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EDBS/KH/7/2019
21st January 2019

All Conventional Banks
Audit Firms
Manama
Kingdom of Bahrain

Dear Sir,

Consultation: Credit Risk Management Module (Module CM)

Please find attached the revised proposed Directive governing the CBB’s requirements in respect of Credit Risk Management, which are included in Module CM of the Rulebook Volume 1. These revised Modules take into account the following enhancements:

• Impairment provisioning requirements of the International Financial Reporting Standard 9: Financial Instruments Measurement and Recognition, the key requirements for which were included in the CBB Circular, EDBS/KH/C/56/2016;
• Various improvements in the standards by the Basel Committee on Banking Supervision relevant to credit risk including the Supervisory Framework for Measuring and Controlling Large Exposures; and
• Other best practices in the area of credit risk management, for example, management of non-performing assets.

The CBB requests all conventional banks, audit firms and interested parties to provide their comments, including ‘nil comments’ on these proposed changes. Responses must be sent electronically in an editable format to “consultation@cb.gov.bh” by 7th March 2019.

The proposed revised Module CM for Volume 1 shall be available on the CBB website (www.cbb.gov.bh) under the “open consultations” section.

Yours sincerely,

Khalid Hamad

cc Bahrain Bankers Association

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مصرف البحرين المركزي
Central Bank of Bahrain

ص.ب: ٢٧، المنامة - مملكة البحرين
هاتف: (+973) 17532605 - فاكس: (+973) 17547400
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