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Location: Central Bank of Bahrain Volume 2—Islamic Banks > Part B > Glossary of Defined Terms > [ P ] > Payment Initiation Service
  • [ P ]

    • 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

    • Parallel Salam (see Salam)

      A Salam contract whereby al-muslam ileihi depends, for executing his obligation, on receiving what is due to him — in his capacity as al-muslam — from a sale in a previous Salam contract, without making the execution of the second Salam contract dependent on the execution of the first one.

    • 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.

    • Participant(s)

      A (CIU) participant is a person with one or more holdingsG in a CIU.

      Added: January 2011

    • Participation (see Musharaka)

      A Musharaka in which the Islamic bank owns shares or units representing an equity stake in another firm's capital.

    • Person

      Unless the context requires otherwise, a natural or corporate person.

    • Personal account transaction

      A transaction undertaken by an employee of an Islamic bank licenseeG in a financial instrumentG , for his own account.

      Added: 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

    • Pooled funds

      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.

    • Price risk

      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

    • Principal

      Means the amount of credit received plus any other potential other charges, the total of which is subject to profit.

      Added: October 2012

    • Principal Amount

      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.

    • PSE

      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

    • Public Offering(s)

      An offer of securities to the general public. (See Rule BC-9.5.9).

      Amended: January 2013
      Added: January 2011

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