IBANK 10.3.22 Treatment of Wakalah Sukuk

(1) The treatment of wakalah sukuk must be based on the intent of the underlying investments in wakalah as set out in this rule.
(2) For investments in trading activities in foreign exchange, shares or commodities, the risk-weight must be as set out as set out in Division 4.5.F (service-based contracts) and Chapter 6 (market risk).
(3) For investments in assets that can be leased or sold on a murabahah basis as income-producing wakalah investments with murabahah subcontracts, the risk-weight must be based on the murabahah subcontracts and the counterparties in those contracts.
(4) For investments in assets that can be leased or sold on a murabahah basis as income-producing wakalah investments through leasing to third parties by means of ijarah, the risk-weight must be based on the counterparty (that is, the lessee).
Derived from QFCRA RM/2015-2 (as from 1st January 2016).