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  • Summary of Capital Requirements for Mudarabah Categories

    • CA-3.7.12

      The following tables set out the Mudarabah categories that attract capital charges:

      Mudarabah Category Credit RW Market Risk Capital Charge
      Specialized financing Supervisory slotting method will be applied.

      Between 90-270% RW of the contributed amount to the business venture based on the four categories.       		NA
      Other 150% RW* of the contributed amount to the business venture less any specific provisions (if there is a third party guarantee, the RW of the guarantor shall be substituted for that of the assets for the amount of any such guarantee). NA
      Mudarabah meeting the definition of trading book   As set out in the applicable market risk section (See chapter CA-5).

      * 100% RW may be applied if the funds can be withdrawn by the bank at short notice of 5 working days.

      Apr 08