Where an Islamic bank licensee fails to meet the required level of capital conservation buffer, it must prepare a Capital Conservation Plan (hereinafter referred to as "Plan") clearly outlining the information mentioned in this Paragraph. The Islamic bank licensee must submit this Plan to the CBB within one week of becoming aware of the shortfall (see also CA-1.2.2). The Islamic bank licensee must already have prepared such a Plan on a contingency basis. The Plan must include the following:
(a) Estimates of income and expenditure and a forecasted balance sheet;
(b) Measures to be taken to increase the Islamic bank licensee's capital ratios;
(c) A plan and time frame for the increase of capital with the objective of meeting fully the buffer requirement; and
(d) Any other information the CBB deems necessary to carry out the assessment required, as indicated in Paragraph CA-2A.2.5.
January 2015
