Ithmaar Bank B.S.C (c)

Liquidity Disclosures - Basel III

31 March 2023

Liquidity Coverage Ratio

One of the key requirements of the revised CBB guidelines includes the computation and disclosure of the Liquidity Coverage Ratio (LCR). LCR has been developed to promote short-term resilience of a bank's liquidity risk profile. The LCR requirements aim to ensure that a bank has an adequate stock of unencumbered high-quality liquidity assets (HQLA) that consists of assets that can be converted into cash immediately to meet its liquidity needs for a 30-calendar day stressed liquidity period. The below table describes the average 90 day LCR of Ithmaar Bank on a consolidated basis as of 31 March 2023.

Pillar 3 LCR Common Disclosure Template

For the Quarter ended

31/3/2023

BD 000

BD 000

Total Unweighted Value

Total Weighted Value

(average)

(average)

HIGH-QUALITY LIQUID ASSETS

1

Total HQLA

433,301

CASH OUTFLOWS

2

Retail deposits and deposits from small business customers, of which:

3

Stable deposits

662

20

4

Less stable deposits

562,956

54,991

5

Unsecured wholesale funding, of which:

6

Operational deposits (all counterparties) and deposits in networks of

cooperative banks

28,714

7,179

7

Non-operational deposits (all counterparties)

517,045

334,441

8

Unsecured debt

-

-

9

Secured wholesale funding

-

10

Additional requirements, of which:

11

Outflows related to derivative exposures and other collateral

requirements

2,123

2,123

12

Outflows related to loss of funding on debt products

-

-

13

Credit and liquidity facilities

100,061

8,426

14

Other contractual funding obligations

51,885

51,885

15

Other contingent funding obligations

407,153

20,358

16

TOTAL CASH OUTFLOWS

-

479,421

CASH INFLOWS

17

Secured lending (eg reverse repos)

-

-

18

Inflows from fully performing exposures

101,287

58,317

19

Other cash inflows

-

-

20

TOTAL CASH INFLOWS

101,287

58,317

TOTAL ADJUSTED VALUE

21

TOTAL HQLA

433,301

22

TOTAL NET CASH OUTFLOWS

421,104

23

LIQUIDITY COVERAGE RATIO (%)

103%

2

Net Stable Funding Ratio (NSFR)

One of the key requirements of the revised CBB guidelines includes the computation and disclosure of the Net Stable Funding Ratio (NSFR). The NSFR requires banks to maintain a stable funding profile in relation to assets and off-balance sheet activities. The following table details the NSFR of Ithmaar Bank B.S.C (c) as of 31 March 2023 on a consolidated basis.

No.

Item

Available Stable Funding (ASF):

1

Capital:

2

Regulatory Capital

3

Other Capital Instruments

4

Retail deposits and deposits from small business

customers:

5

Stable deposits

6

Less stable deposits

7

Wholesale funding:

8

Operational deposits

9

Other wholesale funding

10

Other liabilities:

11

NSFR Shari'a-compliant hedging contract liabilities

12

All other liabilities not included in the above categories

13

Total ASF

Required Stable Funding (RSF):

14

Total NSFR high-quality liquid assets (HQLA)

15

Deposits held at other financial institutions for operational

purposes

16

Performing loans and securities:

17

Performing loans to financial institutions secured by

Level 1 HQLA

Performing loans to financial institutions secured by

18

non-Level 1 HQLA and unsecured performing loans to

financial institutions

Performing loans to non- financial corporate clients,

19

loans to retail and small business customers, and loans

to sovereigns, central banks and PSEs, of which:

BD 000

Unweighted Values (i.e. before applying relevant factors)

More

No

Less than 6

than 6

Total weighted

specified

months and

Over one year

value

months

maturity

less

than one year

73,339

0

0

5,388

78,727

73,339

73,339

5,388

5,388

0

546,350

39,730

3,306

532,284

0

29,718

411

33

28,656

0

516,632

39,319

3,273

503,628

0

603,851

149,006

316,617

556,126

0

0

603,851

149,006

316,617

556,126

0

288,195

0

2,937

2,937

9,585

278,610

2,937

2,937

1,170,075

44,276

0

0

303,180

96,424

617,666

724,508

25,284

4,897

262,882

269,123

277,896

91,527

198,371

353,327

20 21

22

23

  • With a risk weight of less than or equal to 35% as per the CBB Capital Adequacy Ratio guidelines

Performing residential mortgages, of which:

  • With a risk weight of less than or equal to 35% under the CBB Capital Adequacy Ratio Guidelines

Securities that are not in default and do not qualify as HQLA, including exchange-traded equities

135,082

87,804

20,216

13,140

1,114

1,114

24

Other assets:

0

267,408

0

0

267,408

  1. Physical traded commodities, including gold
    Assets posted as initial margin for Shari'a-compliant
  2. hedging contracts contracts and contributions to default

funds of CCPs

27

NSFR Shari'a-compliant hedging assets

0

0

28

NSFR Shari'a-compliant hedging contract liabilities

1,917

1,917

before deduction of variation margin posted

29

All other assets not included in the above categories

265,491

0

265,491

30

OBS items

472,192

23,610

31

Total RSF

1,059,802

32

NSFR (%)

110.41%

3

Leverage Ratio

The Central Bank of Bahrain issued regulations on the financial leverage ratio as part of the CA: Capital Adequacy Module Chapter 10, which was implemented as of 30 September 2019.

The leverage ratio calculation includes all on balance sheet exposures, all off balance sheet exposures after applying the applicable adjustments as per the CBB guidelines:

CBB require banks to hold a minimum leverage ratio of at least 3%.

SNO

Description

BD 000

1

Tier 1 Capital

73,339

On Balance Sheet Assets

2

SF

474,199

3

URIA

1,605,886

4

Off Balance (with conversion CCFs)

249,044

5

Total Assets (2+3*(0.3)+4)

1,205,009

6

Leverage Ratio (1/5)

6.09%

4

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Disclaimer

Ithmaar Holding BSC published this content on 07 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 June 2023 10:57:10 UTC.