IBANK 10.3.20 Treatment of Mudarabah Sukuk

(1) The treatment of mudarabah sukuk must be based on the intent of the underlying investments in mudarabah as set out in this rule.
(2) For a private commercial enterprise that undertakes trading activities, the risk-weight must be as set out in Division 4.5.D (equity-based contracts) and Chapter 6 (market risk).
(3) For a private commercial enterprise that undertakes a business venture or project (other than an enterprise that undertakes trading activities), the risk-weight for equity participation risk in respect of an equity exposure in a business venture or project must be measured according to Division 4.5.D (equity-based contracts) and Chapter 6 (market risk).
Derived from QFCRA RM/2015-2 (as from 1st January 2016).