CA-3.2 CA-3.2 Risk weighting – On-balance-sheet asset Category
CA-3.2.1
Risk weights by Category of on-balance-sheet asset are illustrated in the table below:
Risk weights Category of on-balance-sheet assets/claims 0% (a) Cash;(b) Holdings of Gold bullion and coins;(c) The government of Bahrain & Bahrain public sector entities;(d) Government-owned GCC companies incorporated in Bahrain;(e) Central governments and central banks of GCC and OECD countries; and(f) Central governments and central banks of classified countries where denominated and funded in local currency.20% (a) Cash items in process of collection;(b) Multilateral development banks;(c) Banks and securities firms incorporated in Bahrain, other GCC and OECD countries;(d) Banks incorporated in classified countries with a residual maturity less than 1 year;(e) Public sector entities in GCC and OECD countries; and(f) Government-owned GCC companies incorporated outside Bahrain.50% Mortgages backed by residential property 100% (a) Related parties(b) Holdings of other banks' and securities firms' capital instruments(c) Banks incorporated in classified countries with a residual maturity of over 1 year(d) Central governments and central banks of classified countries (not included above)(e) Public sector entities of classified countries(f) Government-owned companies in non-GCC countries(g) Private sector persons and entities in and outside Bahrain(h) Istisna'a assets*(i) Ijarah / Ijarah Muntahia Bittamleek assets(j) Real estate investments(k) Other assets not reported elsewhere**
* This represents balance in Work in Progress/ cost account less billings. However, Istisna'a receivables should be reported against the risk weighting Category of the counterparty.
** Salam Contracts are subject to market risk and should not be included here.
October 07
