Central Bank of Bahrain
  

Governance

Governance of the CBB is largely prescribed in the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law').

Article 5 of the CBB Law specifies that the CBB shall have a Board, comprising seven Directors, appointed by Royal Decree for a renewable term of four years. Articles 6 through 9 specify the conditions that Directors must satisfy in order to hold office; requirements regarding the proceedings of the Board; the powers of the Board; and the conditions under which Board membership may be terminated.

The day-to-day management of the CBB is entrusted to a Governor, with ministerial rank, and who is directly accountable to the Board. The Governor is appointed by Royal Decree for a renewable 5 year term. The Governor may be supported by one or more Deputy Governors (Article 10).

The Governor is obliged to present a report to the Board within 3 months following the end of each financial year, on the CBB's operations, together with a copy of the audited accounts of the CBB and the external auditor's opinion on those accounts (Article 36). In addition, the CBB's financial operations are subject to review by the National Audit Court (Article 2).

In addition, Article 173 of the CBB Law requires the CBB to present regular reports on the operations of the CBB to the Minister of Finance, who is responsible to the parliament for his oversight responsibilities with respect to the activities of the CBB.

In addition to the above mechanisms, the CBB also ensures effective internal governance of the organisation and its operations through a system of internal committees, supported by documented policies and procedures (which include a staff code of conduct).

Finally, an internal audit and quality assurance function, reporting directly to the Governor with a right of access to the Board, provides assurance on internal systems and controls.
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