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CA-3.6.16

The following table sets out the Musharakah categories that attract capital charges:

Musharakah Category Credit RW Market Risk Capital Charge
Specialized financing Supervisory slotting criteria should be applied.

Between 90-270% RW of the contributed amount* to the business venture based on the four categories.
NA
Other 150% RW** of the contributed amount to the business venture less any specific provisions (if there is a third party guarantee, the RW of the guarantor shall be substituted for that of the assets for the amount of any such guarantee, if lower). NA
Musharakah meeting the definition of trading book   As set out in the applicable market risk section (Chapter CA-5).

* In the case of Diminishing Musharakah, the contributed amount is based on the remaining balance of the invested amount.

** 100% RW may be applied if the funds can be withdrawn by the bank at short notice of 5 working days.

Apr 08