In calculating NSFR Shari'a-compliant hedging contract assets, collateral received in connection with Shari'a-compliant hedging contracts may not offset the positive replacement cost amount, regardless of whether or not netting is permitted under the bank's operative accounting or risk-based framework, unless it is received in the form of a cash variation margin and meets the conditions as specified in Appendix G¹⁴ . Any remaining balance sheet liability associated with; (a) variation margin received that does not meet the criteria above, or (b) initial margin received, may not offset Shari'a-compliant hedging contract assets and must be assigned a 0 percent ASF factor.

¹⁴ NSFR Shari'a-compliant hedging contract assets = (Shari'a-compliant hedging contract assets)—(cash collateral received as variation margin on Shari'a-compliant hedging contract assets).