(a) For Credit Risk Mitigation, banks must make the qualitative disclosures of PD-1.3.21 and PD-1.3.22, and also the following disclosures (with regard to credit risk mitigation):
(i) Policies and processes for, and an indication of the extent to which the bank makes use of on- and off-balance sheet netting, if at all;
(ii) Policies and processes for collateral valuation and management;
(iii) A description of the main types of collateral or other Shari'a Compliant risk mitigation techniques employed by the bank;
(iv) The main types of guarantor and their credit worthiness;
(v) Information about (market or credit) risk concentrations within the credit risk mitigation taken;
(vi) Policies and the carrying amounts for assets owned and leased under Ijarah Muntahia Bittamleek;
(vii) Where a third party guarantee is taken as a risk mitigant, the risk weight applicable to the guarantor should be disclosed and the Shari'a compliance of the guarantee confirmed; and
(viii) The nature and carrying amount of any assets held by the bank as collateral (including any haircuts) and the terms and conditions relating to the pledges. When the assets are not readily convertible into cash by the bank, the policies for disposing of the assets, or for using them in the bank's operations, should be disclosed;
