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Location: Central Bank of Bahrain Volume 1—Conventional Banks > Part A > High Level Standards > LR Licensing Requirements > LR-2 Licensing Conditions > LR-2.3 Condition 3: Controllers
  • LR-2.3 Condition 3: Controllers

    • LR-2.3.1

      Conventional bank licenseesG must satisfy the CBB that their controllersG are suitable and pose no undue risks to the licensee. Conventional banksG must also satisfy the CBB that their group structures do not prevent the effective supervision of the conventional bank licenseeG by the CBB and otherwise pose no undue risks to the licensee.

      October 2007

    • LR-2.3.2

      Chapter GR-5 contains the CBB's requirements and definitions regarding controllersG .

      October 2007

    • LR-2.3.3

      In summary, controllersG are persons who directly or indirectly are significant shareholders in a conventional bank licenseeG , or who are otherwise able to exert significant influence on the conventional bank licenseeG . The CBB seeks to ensure that controllersG pose no significant risks to the licensee. In general terms, controllersG are assessed in terms of their financial standing, their judicial and regulatory record, and standards of business and (where relevant) personal probity.

      October 2007

    • LR-2.3.4

      As regards group structures, the CBB seeks to ensure that these do not prevent adequate consolidated supervision being applied to financial entities within the group, and that other group entities do not pose any material financial, reputational or other risks to the licensee.

      October 2007

    • LR-2.3.5

      In all cases, when judging applications from existing groups, the CBB will have regard to the reputation and financial standing of the group as a whole. Where relevant, the CBB will also take into account the extent and quality of supervision applied to overseas members of the group and take into account any information provided by other supervisors in relation to any member of the group.

      October 2007

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