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  • Real Estate Investment

    • CA-9.1.10

      Islamic bank licensees are required to hold regulatory capital against all of their real estate investment exposures. The risk-weighted amount of a real estate investment exposure is computed by multiplying the amount of the carrying value by the appropriate risk weight.

      January 2015

    • CA-9.1.11

      The applicable risk weights of a single investment exposure for Murabahah, IMB and operating Ijarah are as follows:

      (a) The treatment for a single investment exposure is a 200% RW;
      (b) The treatment for an exposure due to a holding for financing purposes during the non-binding stage of the transaction is a 200% RW; and
      (c) The treatment of an exposure resulting from operating Ijara is the risk weights as mentioned in Paragraph CA-3.5.21.
      January 2015

    • CA-9.1.12

      When Islamic bank licensees are involved extensively in real estate investment activities, the CBB may impose a higher capital charge on a solo basis to cushion unexpected losses. Further, the CBB may increase the level of CCF in case Islamic bank licensees are engaged in real estate as part of off-balance sheet asset management activities.

      January 2015