CBB Volume 1: Contents
[ P ]
Parent or Parent Undertaking
An undertaking or individual ("P"), which has the following relationship to another undertaking ("S"):(i) P holds (alone or, under an agreement with other shareholders) a majority of the voting rights in S;(ii) P (alone or in conjunction with its other subsidiary undertakings), has the right to appoint or remove a majority of its board of directors;(iii) P has the right to exercise a dominant influence over S, either through provisions contained in S's memorandum or articles, or a control contract; or(iv) P is a parent undertaking of a parent undertaking of S.
A (CIU) participant is a person with one or more holdingsG in a CIU.Added: January 2011
Payment Initiation Service
A 'payment initiation service' is an online service to initiate a payment order at the request of a payment service user from a payment account held at another account servicing payment service provider with the user's consent and authentication.Added: December 2018
Payment Initiation Service Provider (s) or PISP(s)
A person licensed by the CBB to undertake payment initiation services.Added: December 2018
Unless the context requires otherwise, a natural or corporate person.
Personal account transactionAdded: January 2011
Politically Exposed Persons or 'PEPs'
'Politically Exposed Persons' or 'PEPs' means individuals who are, or have been entrusted with prominent public functions in Bahrain or a foreign country, for example Heads of State or government, senior politicians, senior government, judicial or military officials, senior executives of state owned corporations or important political party officials or persons who are or have been entrusted with a prominent function by an international organisation. Business relationships with family members or close associates of PEPs involve reputational risks similar to PEPs themselves. The definition is not intended to cover middle-ranking or more junior officials in the foregoing categories. Bahraini PEPs would include all Ministers, all MPs, and all Ministry officials with the rank of Undersecretary or above.Amended: July 2016
In investments, the combination of funds for the benefit of a common project, or a group of investors who use their combined influence to manipulate prices.
The narrow definition of price risk as applied to securities is as follows: The risk that the value of a security (or a portfolio) will decline in the future. Price risk can apply to any financial instrument, commodity, or foreign exchange position. Therefore a wider definition used by hedge funds is: The risk that the value of position in financial instruments, commodities or foreign exchange will decline due to moves in market factors.Amended: January 2015
Means the amount of credit received plus any other potential other charges, the total of which is subject to interest/profit.Added: October 2012
The amount of any outstanding claim (excluding any interest and other expenses) on, or contingent liability in respect of, the relevant counterparty.Added: October 2018
Profit equalization reserve
Profit equalisation reserve is the amount appropriated by the Islamic bank out of the mudaraba income, before allocating the mudarib share, in order to maintain a certain return level of return on investment for investment account holders and increase owners' equity.
Providing credit is defined as the provision of credit to a person in his capacity as borrower or potential borrower. This includes consumer and mortgage credit; and providing credit by way of finance leases, factoring, forfaiting and reverse repo transactions. It also includes the issuance or endorsement of letters of credit, the issuance of letters of guarantee, and other contingent credit activities (such as the underwriting of loans), the purchase on the secondary market of loans and other contracts of credit (that do not otherwise fall under the definition of financial instrumentsG ), and the provision of ancillary credit-related activities, such as advising on or arranging loans. It excludes money advanced to a person in consideration for debt instruments issued by the same person. (see LR-1.3.18).Amended: January 2013
A public sector entity which is specified as such either by the central bank ('domestic PSE') or by an overseas banking supervisory authority ('foreign PSE'). Domestic PSEs include those entities owned by the government, excluding the subsidiaries of such institutions undertaking commercial activities.Added: October 2018
An offer of securities to the general public. (see Rule BC-8.5.9).Amended: January 2013
Added: January 2011