CA-8.2.23
(a) An Islamic bank licensee must have a clear understanding of the nature and features of its individual securitisation exposures, including the risk characteristics of the pools underlying such exposure on an ongoing basis. This requirement applies to both on-and off-balance sheet securitisation exposures;
(b) As the payments to Sukuk holders are dependent on the performance of underlying assets, an Islamic bank licensee must be able to assess the performance information on an ongoing basis; and
(c) An Islamic bank licensee must be able to thoroughly understand all the structural features of a Sukuk that can materially impact the performance of its exposures to the transaction. Such exposures may include credit enhancements, liquidity enhancements, triggers, and deal-specific default definitions.
January 2015