IBANK 10.2.29 Capital treatment to be based on economic substance
(1) The capital treatment of a securitisation exposure must be determined on the basis of the economic substance, rather than the legal form, of the securitisation structure. If an Islamic banking business firm is uncertain about whether a transaction is a securitisation, the firm must consult with the Regulatory Authority.
(2) Despite anything in these rules, the Regulatory Authority may look through the structure to the economic substance of the transaction and:
(a) vary the capital treatment of a securitisation exposure; or
(b) reclassify a transaction as a securitisation and impose a capital requirement or limit on the transaction.
|Inserted by QFCRA RM/2017-1 (as from 1st April 2017).|