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CA-8.3.16

The treatment of Mudarabah Sukuk is based on the intent of the underlying investments in Mudarabah, as follows:

(a) For private commercial enterprise to undertake trading activities in, for example, commodities, the RW must be based on the applicable underlying assets as set out in the market risk section in Section CA-5.1
(b) For private commercial enterprise to undertake business venture or project (other than Subparagraph CA-8.3.16(a)), the RW in respect of an equity exposure is measured according to either the simple RW method or the supervisory slotting criteria approach.
January 2015