CM-4.4.5
A bank may not incur an
(a) Direct exposures (i.e. funded on and off balance sheet excluding Restricted Investment Accounts): A bank may not incur an exposure to an individual counterparty or group of closely related counterparties which exceeds 15% of the reporting bank's (consolidated) capital base without the prior written approval of the CBB. For this purpose, companies/banks with variable capital should not include participation shares in calculating their capital base, since there are governed by Mudaraba contract (profit sharing).
(b) Restricted investment accounts: A bank may not incur an exposure to an individual counterparty or group of closely related counterparties where the exposure is funded by restricted investment accounts, which exceeds 30% of the reporting bank's (consolidated) capital base.
(c) The combined exposures : A combined exposure of (a)&(b) above (funded by on balance sheet funds and restricted investment accounts) to an individual counterparty or group of closely related parties may not exceed 35% of the reporting bank's (consolidated) capital base.
Amended: January 2011
October 2007
October 2007