Regulatory Alerts2024-09-01
Added · Updated
Second Consultation on Capital Adequacy Module (CA)
The Central Bank of Bahrain has issued a second consultation proposing amendments to the Capital Adequacy Module Part 2 to enhance risk measurement and optimize capital allocation for credit risk exposures. The revised framework introduces updated criteria for counterparty credit risk, cross-product netting, failed trades, and securitisations, directly impacting how conventional banks calculate risk-weighted assets. Licensees are required to complete the attached impact assessment questionnaire and submit their feedback, including nil responses, by 1 September 2024.