CA-3.7.12
The following tables set out the Mudarabah categories that attract capital charges:
Mudarabah Category | Credit RW | Market Risk Capital Charge |
Specialized financing |
Between 90-270% RW of the contributed amount to the business venture based on the four categories. |
NA |
Other | 150% RW* of the contributed amount to the business venture less any specific provisions (if there is a third party guarantee, the RW of the guarantor shall be substituted for that of the assets for the amount of any such guarantee). | NA |
Mudarabah meeting the definition of trading book | As set out in the applicable market risk section (See chapter CA-5). |
* 100% RW may be applied if the funds can be withdrawn by the bank at short notice of 5 working days.
Apr 08