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Banking Structures, CBB Regulations & Chapter 1. Dr. Ahmad Asad
Quiz by Ahmad Asad
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​What are the essential characteristics of a banking business under common law?
Accepting deposits, paying checks, and keeping current accounts
Lending only to governments
Issuing bonds to the public
 Accepting money, selling insurance, offering stock
​Which of the following is NOT a source of commercial law in Bahrain?
United Nations Convention on Contracts for the International Sale of Goods (CISG)
The Federal Reserve Act
 GCC Unified Industrial Regulatory Law
Bahrain’s Commercial Law No. 7 of 1987
What are the essential characteristics of a banking business under common law?
Which of the following is NOT a source of commercial law in Bahrain?
What does 'Believe of legal binding' refer to in commercial custom?
Which of the following is an example of a regional source of commercial law in Bahrain?
According to Lord Denning MR, what are the 3 key functions of a bank?
What was established in Donoghue v Stevenson (1932)?
What is a key principle of equity law?
What is 'Natural Law' in the context of finance?
The main difference between Commercial Law and Civil Law is:
A 'Representative Office' under Bahrain law is allowed to:
Which entity in a banking organization is considered the primary legal entity?
Under CBB rules, can a branch be considered a separate legal entity?
What approval is needed to open a branch under CBB rules?
Which of the following are separate legal entities under CBB law?
What is a key requirement for a subsidiary under CBB?
What is CBB’s stance on electronic banking?
What must banks comply with for electronic banking?
Why is AML/CFT compliance critical in electronic banking?
What is Sovereign Risk?
Who is liable for obligations of a foreign branch?
Letters of Comfort are:
What is Bancassurance?
Can banks underwrite insurance directly under normal Bancassurance?
Which license is required for Bancassurance?
What are key customer protection obligations in Bancassurance?
What is CBDC?
How can CBDC impact Correspondent Banking?
What is operational resilience in banking?
Why is operational resilience critical?
AI/ML helps in Correspondent Banking by:
What is the main function of a Representative Office under CBB Rulebook?
What is required before establishing a Representative Office in Bahrain?
Can Representative Offices engage in banking activities such as accepting deposits or issuing loans?
Under CBB consolidated supervision, what must parent banks ensure regarding subsidiaries?
Key Word Definition
Aid Assistance in the form of grants or loans at below market rates. For example, the UK provided aid to Nepal after the 2015 earthquake to help with reconstruction efforts.
Barriers to Trade Government constraints on the flow of international goods and services, such as tariffs and quotas. For example, the European Union imposes tariffs on certain agricultural products to protect its farmers.
BRICS An acronym for an association of five major emerging nations: Brazil, Russia, India, China, and South Africa. For example, BRICS nations often meet to discuss economic cooperation and development strategies.
Demographic Aging The rise in the median age of a population. For example, Japan is experiencing demographic aging, with a significant increase in the elderly population.
Economic Core Region The most highly developed region(s) in a country. For example, London is considered an economic core region in the UK due to its high level of development and economic activity.
GNP (Gross National Product) GDP plus overseas earnings, also known as GNI (Gross National Income). For example, the GNP of the United States includes the value of goods and services produced domestically and the income earned by its citizens abroad.
HIC (Higher Income Country) A country with a high level of income and development. For example, Germany is classified as a higher income country due to its high GDP per capita and advanced infrastructure.
NEE (Newly Emerging Economy) A country that is experiencing rapid economic growth and industrialisation. For example, China is an example of a newly emerging economy, having rapidly industrialised and grown economically over the past few decades.
LIC (Lower Income Country) A country with a low level of income and development. For example, Malawi is considered a lower income country, with a low GDP per capita and limited access to healthcare and education.
GDHI (Gross Disposable Household Income) The amount of money that households have available for spending and saving after taxes and social contributions. For example, in the UK, the GDHI varies significantly between regions, with London having one of the highest levels.
Gini Coefficient A measure of income inequality within a population, ranging from 0 (perfect equality) to 100 (perfect inequality). For example, South Africa has a high Gini coefficient, indicating significant income inequality within the country.
Trade Unions Organisations that promote trade between member countries, such as the East African Community (EAC). For example, the East African Community (EAC) works to promote economic integration and trade among its member states.
Fair Trade A movement aimed at helping producers in developing countries achieve better trading conditions and promote sustainability. For example, Fairtrade coffee ensures that farmers receive a fair price for their product and work under safe conditions.
FDI (Foreign Direct Investment) Investment made by a company or individual in one country in business interests in another country. For example, Toyota's investment in manufacturing plants in the UK is an example of foreign direct investment.
Debt Relief The partial or total remission of debts, especially those owed by developing countries to external creditors. For example, the Heavily Indebted Poor Countries (HIPC) initiative provides debt relief to eligible countries to help them achieve sustainable development.
International Aid Voluntary transfer of resources from one country to another, often in the form of financial assistance, goods, or services. For example, the UK provides international aid to various countries through its Department for International Development (DFID).
Top-Down Development Large-scale development projects led by national governments or international organisations. For example, the construction of the Three Gorges Dam in China is an example of a top-down development project.
Bottom-Up Development Small-scale development projects led by local communities or NGOs, focusing on the needs of the poorest and most vulnerable. For example, WaterAid's installation of hand pumps in rural villages in Africa is an example of a bottom-up development project.
Urbanisation The increase in the proportion of people living in urban areas compared to rural areas. For example, rapid urbanisation in India has led to the growth of megacities like Mumbai and Delhi.
Geopolitics The study of the effects of geography (human and physical) on international politics and relations. For example, the geopolitics of the Arctic region involves disputes over territorial claims and access to natural resources.
Quality of Life The general well-being of individuals and societies, outlining negative and positive features of life. For example, Scandinavian countries are often ranked high in quality of life due to their strong social welfare systems and high levels of happiness.
Poverty Cycle A set of factors or events by which poverty, once started, is likely to continue unless there is outside intervention. For example, lack of education and healthcare can trap families in a poverty cycle, making it difficult for future generations to improve their living standards.
Sustainable Development Economic development that is conducted without depletion of natural resources. For example, the use of renewable energy sources like wind and solar power is a key aspect of sustainable development.
Humanitarian Aid Material or logistical assistance provided for humanitarian purposes, typically in response to crises including natural disasters and man-made disaster. For example, humanitarian aid was provided to Haiti after the devastating earthquake in 2010 to help with immediate relief efforts.
Economic Growth An increase in the production of goods and services in an economy over a period of time. For example, China's economic growth over the past few decades has lifted millions of people out of poverty.
Social Indicators Measures that describe the well-being of individuals or communities, such as health, education, and income. For example, life expectancy and literacy rates are common social indicators used to assess development.
Environmental Sustainability Responsible interaction with the environment to avoid depletion or degradation of natural resources and allow for long-term environmental quality. For example, practices like recycling and conservation of natural habitats contribute to environmental sustainability.
Infrastructure The basic physical and organisational structures and facilities needed for the operation of a society or enterprise. For example, good infrastructure, such as roads, bridges, and schools, is essential for economic development.
Globalisation The process by which businesses or other organisations develop international influence or start operating on an international scale. For example, the globalisation of technology companies like Apple and Google has led to their products being available worldwide.
Microfinance Financial services provided to low-income individuals or groups who are typically excluded from traditional banking. For example, microfinance institutions like Grameen Bank provide small loans to entrepreneurs in developing countries to help them start or expand their businesses.
Structure of BankingLa Isla de Pascua This 64-square mile island off Chile’s west coast goes by many names. Its English name is Easter Island, marking the day in 1722 when it was discovered by a European. In Spanish, it is called Isla de Pascua. The Rapa Nui, its first inhabitants, called it “The Navel of the World.” Experts do not agree on the history of Easter Island. It is unclear where the first people came from or when they arrived. Many people believe they came from neighboring Polynesia around AD 300. This culture built 900 enormous stone statues for which the island is famous. The statues are known as moai. Most of the moai are made of volcanic tuff. Tuff is a soft rock made from the ash that is forced out during a volcanic eruption. It is easier to carve than hard stones like marble, but it is not ideal for carving small details. The moai are considered megaliths (large stones that form prehistoric monuments). They stand up to 33 feet high when on their ceremonial platform (the average height is about 13 feet), and they weigh up to 82 tons. They usually have a trunk (body), inset arms, and an exaggerated head with angular edges. The head of each moai takes up about one-third of the total figure. It all shows that the people who created them could engineer monumental structures. Many moai stand with their backs to the sea. They watch the island like protective markers. Some low-relief carvings of religious deities were added to the backs of the moai at a later date. Experts are still trying to understand how they were carved and moved, and what they might mean.  Chile took control of the island in 1888. At that time, its population was less than 200. The government used it for grazing livestock. Today, the mystery of Easter Island makes it a popular tourist spot. ValparaĂso ValparaĂso is a colorful blend of old and new traditions in Chile. This port city is an interesting example of daily life in Chile. Before the Panama Canal was opened in 1914, all ships traveling east to west had to pass all the way around South America. ValparaĂso was ideally positioned as a stopping point in the Southern Pacific. ValparaĂso has a long history of playing host to a large array of cultures and ideas. The city was known around the world as a place that embraced learning and new ideas. Pablo Neruda had a home in ValparaĂso in the 1920s. After the Panama Canal was completed, shipping traffic declined significantly. ValparaĂso was forgotten and fell upon hard times. In the 1990s, the government of Chile made an effort to revitalize the colorful port. Today it is a UNESCO (United Nations Educational, Scientific and Cultural Organization) World Heritage site. True to its history of embracing learning, it is also home to four universities. Tourists can visit the first stock exchange in Latin America. ValparaĂso also has Chile’s first public library. Visitors stroll through cobblestone streets in the historic district. Here they can also view the city’s iconic colorful buildings. At night, music and street performers liven the experience. Try It Yourself Two Spanish words comprise the name of this city. Val means valley. Paraiso means paradise. The name ValparaĂso means Paradise Valley. Can you recognize descriptive Spanish words in other Spanish place names? Start with names of places around you. Las Comidas Tradicionales To Chileans, nothing says home like pastel de choclo, a type of casserole made of beef and corn. The body of the casserole is flavorful. It contains beef, onions, raisins, and roasted chicken. It is topped off with a layer of creamed corn and then baked. Baking it brings out the sweetness in the corn, adding a contrast to the savory meat. The preferred type of corn is called choclo. This variety is grown in rugged conditions in the Andes. The kernels are large and hearty compared to other varieties.         Another favorite dish in Chile is a type of meat stew called cazuela. Originally a native dish, it is now known as comfort food in Chile. Pork, beef, lamb, or chicken still on the bone is boiled in a traditional clay pot. To that, corn, potatoes, and other local vegetables are added. It is seasoned with onion and garlic. Pablo Rogat/Shutterstock When Chileans think about dessert, manjar is the first ingredient on their minds. It is a caramel sauce made from cooking milk, sugar, and vanilla. It is found in many desserts. It is used as filling in cakes, pies, and cookies. It is refrigerated to make puddings and custards. People even use it to sweeten their coffee.ENGLISH GROUP PROJECT: THE GLOBAL VENTURE (Thailand) Comprehensive Presentation Script & Role Outline (5-Person Distribution) 1. Strategic Role & Workload Distribution Matrix Role / Name Core Domain / Responsibility Presentation Delivery Scope Member 1Member 1 Tan Finance & Housing (Rent, cost of living, deposits, urban/rural margins)Finance & Housing (Rent, cost of living, deposits, urban/rural margins) Slide 3: Finance Lead, Slide 8: Data VisualizerSlide 3: Finance Lead, Slide 8: Data Visualizer Member 2Member 2 Huy Work Culture & Professional Etiquette (Hierarchy, industry growth, networking)Work Culture & Professional Etiquette (Hierarchy, industry growth, networking) Slide 3: Culture Lead, Slide 9: Adaptation ExpertSlide 3: Culture Lead, Slide 9: Adaptation Expert Member 3Member 3 Minh Legal, Immigration & Visa Pathways (Non-Immigrant B visas, extensions, 90-day rules)Legal, Immigration & Visa Pathways (Non-Immigrant B visas, extensions, 90-day rules) Slide 3: Legal Anchor, Slide 4: Legal FrameworkSlide 3: Legal Anchor, Slide 4: Legal Framework Member 4Member 4 THanh Healthcare Ecosystem & Public Safety (Insurance, emergency networks, local hazards)Healthcare Ecosystem & Public Safety (Insurance, emergency networks, local hazards) Slide 3: Safety Anchor, Slide 10: Matrix PresenterSlide 3: Safety Anchor, Slide 10: Matrix Presenter Member 5Member 5 Sơn(project manager),KiĂŞn Logistics, Climate & Project Manager (Transit, weather, group synthesis)Logistics, Climate & Project Manager (Transit, weather, group synthesis) Slide 1-2: Opener, Slide 6: Email Lead, Slide 11-12: CloserSlide 1-2: Opener, Slide 6: Email Lead, Slide 11-12: Closer 3. Complete Presentation Script (Slide-by-Slide) Execution Note: During delivery, presenters should display the corresponding slide from the HTML presentation tool. Speak clearly, maintaining eye contact with the grading panel. 12-Slide Presentation Guide: Secondments in Thailand Slide 1: Title Slide Purpose: Introduce the topic clearly. Content guide: Include the presentation title, group members’ names, course/module name, and date. Speaker guide: Briefly say that the presentation explains what employees and companies should consider before sending someone on secondment to Thailand. Slide 2: Agenda / Overview Welcome everyone. Our presentation is about secondments in Thailand. We will cover the main areas that a company and employee should prepare for before relocation. These include finance and housing, work culture, legal and visa requirements, healthcare and safety, and daily logistics such as transport and climate. By the end of the presentation, we hope to show that a successful secondment depends not only on the job itself, but also on good planning before and after arrival in Thailand. Slide 3: What Is a Secondment? A secondment is a temporary work assignment where an employee is transferred to another country, branch, client site, or partner organization while usually remaining connected to the original employer. Secondments require coordination between the employee, home employer, host organization, and local authorities. Slide 4: Finance & Housing — Cost of Living Finance and housing are one of the first things a secondee should plan before moving to Thailand. The cost of living can vary a lot depending on whether the employee is based in Bangkok, another major city, or a regional area. Urban areas usually have higher rent, but they also offer better access to transport, hospitals, offices, and international services. In smaller cities or rural areas, rent may be lower, but transport and convenience can become bigger concerns. So, the key point is that secondees should not only compare prices, but also consider location, commute, and what support the employer provides. Slide 6: Work Culture — Hierarchy & Etiquette Purpose: Help secondees understand workplace expectations. Content guide: Cover respect for seniority, polite communication, indirect feedback, saving face, punctuality, proper greetings, and professional dress. Speaker guide: Explain that foreign employees should avoid being too blunt in meetings and should observe how local colleagues communicate with managers or senior staff. Suggested visual: “Do and Don’t” etiquette list. Slide 7: Work Culture — Industry Growth & Networking Purpose: Connect secondments to career and business opportunities. Content guide: Mention sectors where Thailand often attracts foreign professionals, such as manufacturing, tourism, logistics, finance, technology, and regional business operations. Discuss relationship-building and networking. Speaker guide: Emphasize that trust and long-term relationships are important in Thai professional settings. Networking can happen through industry events, chambers of commerce, company introductions, and informal business meals. Suggested visual: Thailand industry opportunity map or sector icons. Slide 8: Legal & Immigration — Visa Pathways Purpose: Explain the main legal entry pathway for work-related secondments. Content guide: Introduce the Non-Immigrant B visa as a common work/business visa category. Mention that supporting documents may include passport, application forms, employment or company letters, and other evidence requested by Thai authorities. Speaker guide: Make clear that a visa alone may not be enough to legally work; seconded employees normally need the correct visa and work authorization. The exact process depends on the employer, role, nationality, and assignment structure. Suggested visual: Simple flowchart: Home employer → Host company → Visa application → Arrival → Work permit/compliance. Slide 9: Legal & Immigration — Compliance Rules Purpose: Explain ongoing responsibilities after arrival. Content guide: Cover visa extensions, work permit validity, re-entry permits, address reporting, and 90-day reporting for eligible long-stay foreigners. Speaker guide: Stress that compliance is not a one-time task. Employees and HR teams should track deadlines carefully because missing reporting or renewal dates can cause fines, delays, or legal issues. Suggested visual: Compliance checklist or timeline. Slide 10: Healthcare & Public Safety Purpose: Explain how secondees should prepare for health and safety risks. Content guide: Cover international health insurance, access to private hospitals, emergency numbers, vaccinations or health checks if required, and common local hazards such as road safety, flooding, heat, food hygiene, and mosquito-borne illnesses. Speaker guide: Explain that Thailand has strong healthcare options in major cities, but employees should confirm insurance coverage before arrival. They should also know what to do in an emergency and save important contact numbers. Suggested visual: Emergency preparation checklist. Slide 11: Logistics & Climate Purpose: Explain practical relocation and daily-life planning. Content guide: Cover public transit, taxis, ride-hailing, domestic travel, airport access, SIM cards, banking, weather, rainy season, heat, and packing needs. Speaker guide: Mention that weather affects commuting, clothing, housing choice, and travel planning. Employees should plan around heat, rain, and possible flooding, especially during the rainy season. Suggested visual: Seasonal calendar showing hot, rainy, and cool periods. Slide 12: Project Manager / Group Synthesis Purpose: Bring the presentation together and end with key recommendations. Content guide: Summarize the main risks and preparation steps: budget early, secure compliant visa/work permit arrangements, understand workplace culture, arrange insurance, and prepare for climate/logistics. Speaker guide: Conclude by saying that a successful secondment in Thailand depends on both professional readiness and personal relocation planning. End with 3–5 recommendations for companies and employees. Suggested visual: Final checklist: “Before departure,” “Upon arrival,” and “During secondment.” A simple way to divide the work is: Member 1: Slides 1–3 introduction. Member 2: Slides 4–5 finance and housing. Member 3: Slides 6–7 work culture. Member 4: Slides 8–9 legal and immigration. Member 5: Slides 10–12 healthcare, logistics, and conclusion. 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