CA-3.6.15
The following table sets out the Musharakah categories that attract capital charges:
| Musharakah Category | Credit RW | Market Risk Capital Charge |
| Private commercial enterprise to undertake trading activities in the foreign exchange, share and/or commodity | Not applicable. |
Depends on the underlying asset as set out in the applicable |
| Private commercial enterprise to undertake business venture other than trading activities in the foreign exchange, share and/ or commodity |
(a) Simple RW method 400% 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 is substituted for that of the assets for the amount of any such guarantee)
Or
(b) Slotting method Between 90–270% RW of the contributed amount* to the business venture based on the four categories
|
Not applicable |
|
Joint ownership of real estate and movable assets (Musharakah with Ijara subcontract, Musharakah with Murabahah subcontract) |
Based on lessee's (for Ijara sub-contract) or customer's (for Murabahah subcontract) rating or 100% RW for unrated lessee or customer |
Please refer to the |
* In the case of Diminishing Musharakah, the contributed amount is based on the remaining balance of the invested amount.
January 2015