Versions

 

CA-4.6.14

For short-term claims on Islamic bank licensees, the interaction with specific short-term assessments is expected to be the following:

(a) The general preferential treatment for short-term claims, as defined under Paragraphs CA-4.2.11 and CA-4.2.12, applies to all claims on Islamic bank licensees of up to three months original maturity when there is no specific short-term claim assessment;
(b) When there is a short-term assessment and such an assessment maps into a risk weight that is more favourable (i.e. lower) or identical to that derived from the general preferential treatment, the short-term assessment should be used for the specific claim only. Other short-term claims would benefit from the general preferential treatment; and
(c) When a specific short-term assessment for a short term claim on an Islamic bank licensee maps into a less favourable (higher) risk weight, the general short-term preferential treatment for inter-bank claims cannot be used. All unrated short-term claims should receive the same risk weighting as that implied by the specific short-term assessment.
January 2015