CA-2.1 CA-2.1 Introduction
CA-2.1.1
Regulatory Capital is the sum of the following components (as defined in Rules CA-2.2.1 to CA-2.2.6), subject to the restrictions set out in Section CA-2.3:• Tier 1: Supports the calculation of credit risk weighted assets and at least 28.57% of market risk.• Tier 2: Supports credit risk and market risk subject to limitations.October 07CA-2.1.2
For the purpose of calculating its Capital Adequacy Ratio (CAR), the risk-weighted assets of an Islamic bank consist of the sum of the risk-weighted assets financed by the Islamic bank's own capital and liabilities, plus 50% of the risk-weighted assets financed by the Islamic bank's PSIA. This applies to both unrestricted PSIA that are accounted for on the Islamic bank's balance sheet and restricted PSIA that are accounted for off the balance sheet.
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