IBANK 2.1.3 Financial Group and Risks

(1) If an Islamic banking business firm is part of a financial group, credit risk, market risk, operational risk, liquidity risk, equity participation risk and ROR risk apply on a consolidated basis to the firm and the other members that make up the financial group.
(2) Done on a consolidated basis means done not just to include the financial activities or items of the firm but those of the other members of its financial group as well.

Note An Islamic banking business firm must have systems to enable it to calculate its financial group capital requirement and resources — see rule 9.1.3(3). The firm must ensure that its financial group capital resources exceed its financial group capital requirement — see rule 9.2.2.
Derived from QFCRA RM/2015-2 (as from 1st January 2016).