(a) Positions taken deliberately in order to hedge, partially or totally, against the adverse effects of exchange rate movements on the Islamic bank licensee's CAR;

(b) Positions related to items that are deducted from the Islamic bank licensee's regulatory capital when calculating its Total Capital in accordance with the rules and guidelines in this Module, such as investments in non-consolidated subsidiaries or long-term participations denominated in foreign currencies which are reported at historical cost; and

(c) Retained profits held for payout to parent, where the profits are held in the currency concerned.

(a) The concerned Islamic bank licensee provides adequate documentary evidence to the CBB which establishes the fact that the positions proposed to be excluded are, indeed, of a structural nature (i.e. non-dealing) and are merely intended to protect the Islamic bank licensee's CAR. For this purpose, the CBB may ask written representations from the Islamic bank licensee's management or directors; and

(b) Any exclusion of a position is consistently applied, with the treatment of the structural positions remaining the same for the life of the associated assets or other items.