CA-4.4 CA-4.4 Simple Risk Weight Method
CA-4.4.1
As stated in Paragraph CA-4.2.26, the CBB may require an
Islamic bank licensee to adopt the simple risk weight method for equities if the CBB considers that theIslamic bank licensee's equity portfolio is significant.January 2015CA-4.4.2
The RW under the simple risk weight method for equity position risk in respect of an equity exposure must be 300% for listed and 400% for unlisted less any specific provisions for impairment. If there is a third party guarantee to make good impairment losses, the RW of the guarantor must be substituted for that of the assets for the amount of any such guarantee.
January 2015
