Versions

 

RM-6.3.8

The measurement of rate of return risk highlights the importance of cash flow forecasting for instruments and contracts where Islamic bank licensees are required to simulate and assess their behavioral maturity, underlying assumptions and parameters, which must be reviewed periodically for reliability. The materiality of potential threats to future earnings and the usefulness of the resulting information must be considered in determining the type and extent of forecasted behavior for Islamic bank licensees.

January 2013