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RM-5.2.6

Where the principle of Mudarabah is employed to source the funds, from an asset-liability management perspective, Islamic bank licensees may be viewed as being hedged to the extent that the IAH bears the risks of the assets in which its funds are invested. This statement is true only if the Mudarib has acted in accordance with its fiduciary duties under the Mudarabah contracts and without misconduct or negligence.

January 2013