Bahrain central bank issues new disclosure rules.
All licensed financial institutions in Bahrain will be required to publicly disclose their risk profile, risk management, capital adequacy, capital instruments and remuneration practices, under new rules by the Central Bank of Bahrain (CBB).
According to law firm Charles Russell, the CBB is now seeking to incorporate the Basel Committee's Pillar 3 measures relating to the composition of capital and remuneration into its regulatory framework through the introduction of the new remuneration rules in its Rule Book.
The CBB has granted a transition/grace period for licensed financial institutions to implement the new remuneration rules which become effective from July 1 next year, reported the Gulf Daily News, our sister publication.
Licensed financial institutions in Bahrain will have had to undertake detailed internal audit and compliance reviews to ensure that their practices and operations are compliant with the new remuneration rules from that date, said Charles Russell.
In a statement, the CBB said the three regulatory initiatives address training and competency, sound remuneration practices for licensed banks and the internal audit function in banks.
Banks are required to demonstrate that individuals undertaking controlled functions are sufficiently competent, and are able to undertake their respective roles and responsibilities.
The new rules also take into account developments in supervisory practices in banking organisations and incorporate lessons learned from the financial crisis.
Licensed financial institutions in Bahrain will be required to disclose quantitative and qualitative information on their approach to remuneration including aggregated information and data about its remuneration of senior managers and material risk-takers, together with information about their remuneration policies and procedures.
The new CBB remuneration rules will only apply to all approved persons and material risk-takers whose total annual remuneration is in excess of BD100,000 ($264,000).
"The CBB has conducted various consultations in line with the implementation of international standards, seeking feedback from the industry to ensure that due consideration is given to various queries and issues raised and thereby translating international standards to take into account the banking industry in Bahrain," CBB executive director for banking supervision Khalid Hamad said.
The consultation process ensures that the CBB has a transparent regulatory process, and all consultations are publicly available on its website (www.cbb.gov.bh) along with feedback statements reflecting industry comments and the CBB's reply or actions taken in light of the comments received," he added. - TradeArabia News Service
[euro]o Copyright 2012 www.tradearabia.com
Copyright 2013 Al Hilal Publishing & Marketing Group Provided by Syndigate.info , an Albawaba.com company
|Printer friendly Cite/link Email Feedback|
|Publication:||TradeArabia (Manama, Bahrain)|
|Date:||Dec 25, 2013|
|Previous Article:||LetsTango.com launches new mobile site.|
|Next Article:||Experts to discuss digital security issues.|