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  • Other Capital Charges

    • CA-5.6.14

      For Istisna work-in-process (WIP), WIP inventory belonging to the Islamic bank licensee must attract a capital charge of 8% (equivalent to a 100% RW). In the case of the balance of unbilled WIP inventory under Istisna` without parallel Istisna`, in addition to the RW for credit risk a capital charge of 1.6% is applied (equivalent to a 20% RW) to cater for market risk exposure.

      January 2015

    • CA-5.6.15

      The funding of a commodities position that exposes the Islamic bank licensee to foreign exchange exposure is also subject to a capital charge as measured under foreign exchange risk (refer to Section CA-5.5).

      January 2015