CA-4.1 CA-4.1 Introduction
CA-4.1.1
This chapter sets out the minimum capital requirements to cover the risk of holding or taking positions in equities in the bank's trading book.
CA-4.1.2
The minimum capital requirement for equities is expressed in terms of two separately calculated charges, one relating to the "specific risk" of holding a long position in an individual equity, and the other to the "general market risk" of holding a long position in the market as a whole.
CA-4.1.3
Where the bank has invested in shares/units of equity funds on Mudaraba financing and the bank has direct exposures in the equities which are traded in a recognised stock exchange, the shares/units are considered to be subject to equity risk. The equity position would be considered to be the net asset value as at the reporting date.
