CA-3.7.25
The applicable stages in a Mudarabah contract in project finance that attract capital charges of Paragraph CA-3.7.13 are:
| Applicable Stages in a Contract | Credit RW | Market Risk Capital Charge |
| Prior to certification, where funds are already advanced by the bank to the Mudarib | Risk weight is based on the rating of either the ultimate customer or the Mudarib (see Paragraph CA-3.7.13). Otherwise, 400% RW is applied to an unrated Mudarib. | Not applicable |
| After certification, where the amount is receivable by the bank from the Mudarib in respect of progress payment to the Mudarib from the ultimate customer | If a "repayment account" or similar mitigation structure is used, RW is based on the credit standing of the ultimate customer on the amounts receivable by the bank from the Mudarib (or 100% RW for unrated customer). | Not applicable |
January 2015