CA-3.7.24
The Mudarabah categories that attract capital charges of Paragraphs CA-3.7.11 and CA-3.7.12 are:
| Mudarabah Category | Credit RW | Market Risk Capital Charge |
| Private commercial enterprise to undertake trading activities in the foreign exchange, share and/or commodity | Not applicable | Depends on the underlying asset as set out in the applicable |
| Private commercial enterprise to undertake business venture other than trading activities in the foreign exchange, share and/or commodity | (a) Simple risk-weight method: 400% RW* of the contributed amount to the business venture less any specific provisions or:
(b) Slotting method: Between 90% and 270% RW of the contributed amount to the business venture based on the four categories |
Not applicable |
* 300% RW may be applied if the funds are subject to withdrawal by the investor at short notice.
January 2015