IBANK 3.3.2 Capital Conservation Buffer

(1) An Islamic banking business firm whose risk-based capital requirement is higher than its base capital requirement must maintain a minimum capital conservation buffer of:
(a) 2.5% of the firm's total risk-weighted assets; or
(b) a higher amount that the Regulatory Authority may, by written notice, set from time to time.
(2) A firm's capital conservation buffer must be made up of CET 1 capital above the amounts used to meet the firm's CET 1 capital ratio, tier 1 capital ratio and regulatory capital ratio in rule 3.2.6(2).

Note Capital raised through the issuance of sukuk cannot form part of the capital conservation buffer because that capital does not qualify as CET 1 capital.
Derived from QFCRA RM/2015-2 (as from 1st January 2016).