CBB issues directive on prohibiting the practice of blocking accounts upon loss of employment or retirement
Published on 9 March 2020
Media Center Press Release
Manama, Kingdom of Bahrain – 9 March 2020 – The Central Bank of Bahrain (CBB) has instructed all retail banks to refrain from blocking customer accounts if they come to know that the customer has lost his or her employment or has retired if that customer has a financing arrangement with the bank.
The CBB issued a directive dated 8th March 2020, prohibiting such practice by retail banks, regardless of whether or not contractually the bank has the right to take such action.
The instructions are aimed at ensuring sound and fair banking practices, taking into consideration the interests of customers, as part of the CBB’s ongoing initiatives for best practices and consumer protection in the Kingdom.