CA-3.3.15
The following table sets out the applicable stage of the contract that attracts capital charges:
(a) Salam with Parallel Salam
| Applicable Stage of Contract | Credit RW | Market Risk Capital Charge |
| Payment of purchase price by the bank to a Salam customer | Based on customer's rating or 100% RW for unrated customer. No Netting of Salam exposures against parallel Salam exposures. (See Section CA-4.2) |
Two approaches are applicable: Maturity Ladder Approach (see CA-5.6.) 3% capital charge on gross positions (i.e. Salam exposures plus parallel Salam exposures) See Paragraphs CA-3.3.12 to CA-3.3.14. |
| Receipt of the purchased commodity by the bank. Asset available for delivery to the customer. | NA | |
| The purchased commodity is sold and delivered to the buyer. | NA | NA |
(b) Salam without Parallel Salam
| Applicable Stage of Contract | Credit RW | Market Risk Capital Charge |
| Payment of purchase price by the bank to a Salam customer (seller) | Based on customer's rating or 100% RW for unrated customer. (See Section CA-4.2) |
Simplified approach 15% capital charge on long position of Salam exposures. See Section CA-3.3.12 to CA-3.3.14. |
| Receipt of the purchased commodity by the bank. Asset available for delivery to the customer. | NA | |
| The purchased commodity is sold and delivered to the buyer. | NA | NA |
January 2015