Versions

 

CA-5.6.5

Commodities risk can be measured using either the maturity ladder approach or the simplified approach for the purpose of calculating the capital charge for commodities risk. Islamic bank licensees must notify the CBB of which approach they propose to follow. This is for reporting purposes on the form PIR. An Islamic bank licensee which proposes to use the maturity ladder approach will not be allowed to revert to the simplified approach without the prior approval of the CBB.

January 2015