The Central Bank of Bahrain has proposed amendments to the Standardised Approach for Credit Risk under its capital adequacy framework for all Bahraini Islamic banks. The changes would align the framework with the Islamic Financial Services Board’s IFSB-23 standard and revise requirements covering credit risk exposures, counterparty credit risk and related capital calculations. The proposals also address cross product netting, failed trades and transactions not settled on a delivery versus payment basis. Banks are being asked to assess the effect on their systems, processes, quantitative capabilities and capital adequacy ratios across major exposure classes, as well as their readiness to calculate capital charges under the Standardised Approach for Counterparty Credit Risk and the securitisation framework.
2026-09-20Central Bank of Bahrain
Central Bank of Bahrain launches consultation on Islamic bank credit risk capital rules aligned with IFSB-23
The Central Bank of Bahrain is consulting on revised credit risk capital rules for all Bahraini Islamic banks to align its framework with IFSB-23. Banks are being asked to assess the effects on capital ratios, systems and their ability to calculate counterparty credit risk and securitisation capital charges.