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Location: Central Bank of Bahrain Volume 1—Conventional Banks > Part A > High Level Standards > GR General Requirements > GR-3 Dividends > GR-3.1 CBB Non-Objection > GR-3.1.3
  • GR-3.1 CBB Non-Objection

    • GR-3.1.1

      Bahraini conventional bank licenseesG must obtain a letter of no-objection from the CBB to any dividend proposed, before announcing the proposed dividend by way of a press announcement or any other means of communication and prior to submitting a proposal for a distribution of profits to a shareholderG vote.

      Amended: April 2011
      October 2007

    • GR-3.1.2

      The CBB will grant a no-objection letter where it is satisfied that the level of dividend proposed is unlikely to leave the licensee vulnerable – for the foreseeable future – to breaching the CBB's capital requirements, taking into account (as appropriate) the licensee's liquidity and the adequacy of provisions against impaired loans or other assets.

      Amended: October 2011
      October 07

    • GR-3.1.3

      To facilitate the prior approval required under Paragraph GR-3.1.1, conventional bank licenseesG subject to GR-3.1.1 must provide the CBB with:

      (a) The licensee's intended percentage and amount of proposed dividends for the coming year;
      (b) A letter of no objection from the bank's external auditor on such profit distribution; and
      (c) A detailed analysis of the impact of the proposed dividend on the capital adequacy requirements outlined in Module CA (Capital Adequacy) and liquidity position of the bank.
      Amended: October 2017
      Amended: October 2011
      October 07

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