The Central Bank of Bahrain (CBB) has unveiled new regulations regarding the appointment of Board Members and senior management at licensed financial institutions, aiming to reduce administrative burdens while maintaining stringent standards.
Key changes include a reduction in the number of senior management positions requiring CBB pre-approval, and the elimination of prescriptive ‘one-size-fits-all’ qualifications and core competency requirements. Instead, licensees will be responsible for developing their own internal standards.
By shifting the focus from pre-approval to accountability, the CBB empowers boards and CEOs to take full responsibility for ensuring the suitability of their senior management teams. This move reflects a strategic shift from co-managing appointments to holding leadership accountable for talent selection.
The new CBB prior approval requirements for Board Members and senior managers will be implemented on April 1, 2025. The remaining requirements will take effect on October 1, 2025. The module is applicable to all CBB licensees and is accessible in the Common Volume of the CBB Rulebook on the CBB website: https://cbben.thomsonreuters.com/rulebook/common-volume.