CA-10.3.2

All the on-balance sheet items on the assets side of the Bahraini Islamic bank licensee's balance sheet must be included. This includes all the Shari'a-compliant alternatives to repurchase transactions and securities financing transactions. AAOIFI accounting measures for Bahraini Islamic bank licensees must be used for taking account of such transactions.¹³ For Shari'a-compliant hedging instruments, the accounting measure of the exposure must be used (i.e. unweighted and 100% C.C.F.). In addition, potential future exposures must be computed on an unweighted basis according to the Current Exposure Method, as delineated in Paragraph CA-4.5.16.

¹³ Unless there are no applicable AAOIFI accounting standards, in which case IFRS must be used.

CA-10.3.3

Items (such as goodwill) that are deducted completely from Tier One Capital must be deducted from Total Exposures.

CA-10.3.4

According to the treatment outlined in Paragraphs CA-2.4.20 to CA-2.4.24, where a financial entity is not included in the regulatory scope of consolidation in CA-B.1.2A, the amount of any investment in the capital of that entity that is totally or partially deducted from CET1 or from AT1 capital of the Bahraini Islamic bank licensees following the corresponding deduction approach in Paragraphs CA-2.4.20 to CA-2.4.26 must be deducted from Total Exposures.