CBB Volume 1: Contents

Central Bank of Bahrain Volume 1—Conventional Banks
Part A
Business Standards
BC Business and Market Conduct
BC-4 Customer Account Services and Charges
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In addition to the requirements under Paragraph BC-4.3.9, retail banks must publicly disclose by conspicuous noticeG for instalment financing facilities:

(a) The current Annual Percentage Rate (APR) as calculated using the APR methodology in Paragraph BC-4.3.31. The APR displayed must be calculated based on the following scenarios. In case of consumer finance, amount borrowed is BD10,000 for a 7-year term and for housing facilities, BD100,000 for 25 years.
(b) The Annual Percentage Rate (APR), must be broken down as follows:
(i) The annual nominal interest rate payable on the instalment financing;
(ii) Administration/handling fees;
(iii) In the case of finance lease contracts/ijara or deferred purchase contracts, any fees for purchasing the asset; and
(iv) Any other mandatory charges (contingent costs are excluded); and
(c) The terms and conditions for early repayment, partial or full, of the credit agreement, or for any change in the terms and covenants of the credit agreement, as well as any relevant charges (where permitted) and the way in which these are calculated.
Added: October 2012
(1 Version)
Oct 1 2012 onwards
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