PD-1.3.33
Past version: Effective from 01 Apr 2008 to 30 Sep 2010
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The following quantitative disclosures should be made when the concerned Islamic bank has unrestricted investment accounts:
a) Amount of IAH funds.
b) The ratio of Profit Equalization Reserves (PER) to the total
amount of PSIA by type of IAH.
c) The ratio of Investment Risk Reserves (IRR) to the total of
PSIA by type of IAH.
d) ROAA and ROAE.
e) Ratio of profit distributed to PSIA by type of IAH. The bank
must disclose the profit sharing formula used for the
calculation and distribution of profits.
f) The management fee (Mudarib share) as a percentage of the
total investment profit, and the extent to which it is subject
to partial or total waiver in order to pay a competitive rate of
return to IAH.
g) Ratio of financing to PSIA by type of IAH.
h) Percentage of financing for each type of Shari'a-compliant
contract to total financing.
i) Percentage of financing for each category of counterparty to
total financing — that is, Amount of Shari'a-compliant
financing extended to a category of counterparties
(outstanding) / Amount of total financing (outstanding) x
100.
j) The carrying amount of any assets that the bank has pledged
as collateral and the terms and conditions relating to the
pledge.
k) The amount of any guarantees or pledges given by the bank
and the conditions attaching to those guarantees or pledges.
l) Share of profits earned by IAH, before transfers to or from
reserves (amount and as a percentage of funds invested).
m) Share of profits paid out to IAH, after transfers to or from
reserves (amount and as a percentage of funds invested).
n) Share of profits paid out to the bank as Mudarib.
o) Movement on PER and IRR during the year.
p) The utilization and computation of PER and/or IRR during
the period.
q) Average declared rate of return or profit rate on PSIA by
maturity (3-month, 6-month, 12-month, 36-month).
r) Types of assets in which the funds are invested and the
actual allocation among various types of assets.
s) Changes in asset allocation in the last six months.
t) Off-balance sheet exposures arising from investment
decisions, such as commitment and contingencies.
u) Limits imposed on the amount that can be invested in any
one asset.
v) The treatment of assets financed by IAH in the calculation
of RWA for capital adequacy purposes.
w) Profits earned and profits paid out over the past five years
(amount and as a percentage of funds invested).
x) Amount of total administrative expenses charged to
unrestricted IAH.
April 2008