Central Bank of Bahrain
  

Consultations

The Central Bank of Bahrain and Financial Institutions Law 2006 places an obligation on the Central Bank to consult formally before issuing any Regulations, unless the Regulation in question is urgently required (Article 37). No such obligation exists in the case of Directives (Article 38). However, the has a general policy of involving the industry and other stakeholders in developing all its requirements, and publicly consulting on these, wherever possible.

The CBB's policy development plans are outlined at the start of each year in a policy statement. These plans may also be supplemented from time to time by occasional newsletters on key areas of policy under development, such as Basel II.

The tables below list: open, closed and finalized consultations; the closing date for comments; the consultation material in the form of PDF files; CBB's response to feedback received and the effective date of the directive/regulation. Contact details are given in each consultation paper. General enquiries about consultations may be addressed to the CBB's Policy Unit.

Open Consultations

These papers are open for Licensees' comments and feedback.
Consultation Paper Closing Date for Comments Consultation Paper
Requirements for Related Party Transactions for Insurance Licensees
13th November 2014

 

 

Closed Consultations

The consultation period for these papers is now closed. the CBB is reviewing the comments and feedback received. The CBB's response to the feedback will be posted on the website when available.

Consultation Paper Closing Date

Documents/ CBB's response to feedback received

1.
Consultation - Proposed Changes to Module CM Concerning the Credit Grading / Classification System
15 March 2012
2.
Proposed Regulation on Close-Out Netting
28 February 2013
3.
Draft Regulation with respect to the Conditions and Procedures for Obtaining Approval for Controlled Functions within Licensees .

31 March 2013

4.
Draft Regulation with respect to the Conditions and Procedures for Obtaining Approval for Controlled Functions within Licensees (Representative Offices).

31 March 2013

5.
Draft Regulation with respect to the Conditions and Procedures for Obtaining Approval for Controlled Functions within Licensees (Financing Companies)

31 March 2013

6.
Draft Regulation with respect to the Conditions and Procedures for Obtaining Approval for Controlled Functions within Licensees (Capital market Licensees)
4 April 2013
7.
Draft Regulation with respect to the Conditions and Procedures for Obtaining Approval for Controlled Functions within Licensees (Insurance Licensees)
4 April 2013
8.
Draft Regulation with respect to the Conditions and Procedures for Obtaining Approval for Controlled Functions within Licensees (Other Licensees)
4 April 2013

 

9.
Consultation Paper - Proposed Directive on Internal Audit Function in Banks
5 May 2013
10.
Consultation Paper - Volume 2 Draft Module “Business & Market Conduct”
16 June 2013
11.
Second Consultation Paper - Proposed changes to Module CM concerning the Credit Grading/ Classification System

11 July 2013

 

12.
Consultation paper- Proposed changes to paragraph CM-7.1.3 for Volume 1 (CM-6.1.3 for Volume 2) concerning the CBB’s prior approval requirements of writing off exposures
11 August 2013
13.
Proposed Regulation Governing Control in Investment Business Firm and Insurance Licensees
24 October 2013
14.
Consultation on Modules for Ancillary Service Providers (Volume 5: Specialised Licensees)
30 March 2014

 

15.
Consultation on the Proposed Securitisation Law in Bahrain

17 April 2014

 

 

16 April 2014

16.
Consultation Special Murabaha Financing Contracts
20 April 2014
17
Consultation Proposed Amendments on the Financial Crime (FC) Module for all Bank and Investment Firm Licensees
20 May 2014
18.
New Client Assets Module (CL) for Volumes 1 and 2
11th September 2014
 
 

Finalized Consultations & CBB Feedback Statements

The following consultations have recently been finalized. The consultation material is retained below for reference purposes, until such time as the finalized material is included in the upcoming CBB Rulebook update or if no changes are made to the Rulebook, for a 6-month period following the closing date of the consultation period. This section contains as well the CBB's feedback statements following the revision of the financial institutions' comments on the issued consultations.

Finalized Consultation Paper

Effective date of the Directive/ Regulation

Documents

1.
Consultation Paper - Volume 5 - Module TC (Training and Competency) for Financing Companies
Issued as part of January 2014 updates
2.
Consultation Paper - Volume 5 Draft Specific Modules for Microfinance Institutions
Issued as part of January 2014 updates
3.
Consultation Paper - Volume 5 Draft Specific Modules for Financing Companies
Issued as part of January 2014 updates
4.
Consultation Paper- Sound Remuneration Practices for Licensed Banks
Issued as part of January 2014 updates

Feedback Statement

 

5.
Consultation Paper- Issuing and Offering of Securities Module OFS Volume 6 (Capital Markets)
Issued as part of January and April 2014 updates  
6.
Consultation on the Proposed Law with Respect to Investment Limited Partnership
To be issued once approved by Cabinet  
7.
Prior Approval Required for Dismissal of Persons in a Control Function
Issued as part of April 2014 update for Volumes 1 and 2
8.
Consultation on Enhanced Operational and Solvency Framework for Takaful & Retakaful Industry - Volume 3 (Insurance)
Issued as part of April 2014 update for Volume 3
9.
Basel 3 Consultation_ Draft Rulebook Module CA Basel 3
Subject to 2nd consultation
10.
Proposed Changes to Module PCD Chapter 4 concerning Special Purpose Vehicles and Shari’a Compliance
Issued as part of April 2014 update for Volumes 1 and 2

 

11.
Final Basel 3 Rulebook Module CA for Conventional Banks (Volume1)
To be issued in January 2015
12
Final Basel 3 Rulebook Module CA for Islamic Banks (Volume 2)
To be issued in January 2015
13.
Consultation - CBB Volume 5 Rulebook for Microfinance Institutions Module RM
Issued as part of July 2014 Update
14.
Consultation on the Proposed Law with Respect to Protected Cell Companies
To be issued once approved by Cabinet
 
 

Archives

All CBB's feedback statements which have been published for more than 6 months would be retained below for reference purposes.

Consultation Paper

Date

Documents

1.
Proposed Rules on the Attendance of Directors at the Board of directors Meetings for Investment Firm Licensees and Insurance Licensees
May 2011
2.
CBB Volume 5 for Administrator Licensees (Specialised Licensees
May 2011
3.
Consultation Paper- Proposed Approval Requirements for Major Acquisitions by Locally Incorporated Banks
January 2011
4.
Second Consultation Paper on Proposed Amendment to Large Exposure Limits for Licensed Banks
January 2011
5.
Consultation Paper - Volume 5 draft Common Modules and Specific Modules for Representative Office Licensees
December 2010
6.
Consultation Paper on "Anti-Money Laundering and Combating Financial Crime Module (AML Module)"
November 2010
7.
Consultation Paper - Volume 5 Draft Common Modules and Specific Modules for Money Changers Licensees

October 2010

8.
Transaction Advice and Internet Security
31 July 2011
9.
Consultation - IFSB Exposure Draft on Guiding Principles on Stress Testing
29 December 2011
10.
Consultation Paper - High Level Controls (Corporate Governance) Module

1 September 2011

11.
Proposed Minimum Requirements on Customer Complaints Procedures

October 2011

12.
Consultation - IFSB Exposure Draft on Guiding Principles on Liquidity Risk
25 December 2011
13.
Proposed Paper on Liquidity Risk Management for Conventional Banks

30 July 2009

14.
Second Consultation Paper on Liquidity Risk Management for Conventional Banks

30 September 2010

 

 

15.
Extension of Bahrain Credit Reference Bureau (BCRB) Services to Cover Corporates

29 January 2011

 

16.
Consultation - Basel 3 Consultation
31 August 2011
17.
Consultation - IFSB Exposure Draft on Guiding Principles on Liquidity Risk
25 December 2011
18.
Consultation - Enhancements to Basel II Framework and required revisions to the CBB Rulebook
27 October 2011
19.
Consultation Paper - Module CL (Client Money) Volume 3 (Insurance)

April 2012

20.
Consultation on the Sound Compensation practices for Licensed Banks

Replaced by Consultation Paper- Sound Remuneration Practices for Licensed Banks issued 6th November 2012.

 

21.
Proposed regulation on the conditions of granting a license for the provision of regulated services

Issued in the Official Gazette on the 1 September 2011

22.
Proposed Regulation of the year 2011 with respect to Financial Services offered in the Kingdom of Bahrain

Issued in the Official Gazette on the 14 June 2012

23.
Consultation - Enhancements to Basel II "Principles for the Sound Management of Operational Risk" and required revisions to the CBB Rulebook.
October 2012
24.
BIS Consultative Document- Fundamental Review of the Trading Book - Second Document
31 December 2013

 

25.
Consultation - Disclosure of Interest/ Profit Rate Fees and Charges by Retail Banks and Financing Companies
Issued as part of October 2012 updates.
26.
Consultation - Restricted Investment Accounts
Issued as part of January 2013 Update
27.
Consultation - Volume 6 Collective Investment Undertakings Module (CIU)
2nd May 2012
28.
Proposed Regulation on the Procedure for Processing Applications of Banks to transfer financial services business in the Kingdom
Issued in the Official Gazette on the 16 August 2012
29.
Consultation - New Risk Management Module for Islamic Bank Licensees
Issued as part of April 2014 update for Volumes 1 and 2
30.
Specific Modules (AU, BR & HC) for Financing Companies Licensees
February 2013
31.
Consultation Paper - Volume 5 draft Common Modules and Specific Modules (CA & GR) for Financing Companies Licensees
February 2013
32.
Consultation Paper - Volume 5 draft Common Modules for Trust Services Providers
Issued as part of April 2013 updates
33.
Consultation Paper - Change in Due Date and Payment for CBB Annual Fees for CIUs and PIUs
Issued as part of July 2013 updates
34.
Training and Competency Module for all Banks
Issued as part of October 2013 updates
       

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