IBANK 3.4.8 How to calculate total exposure measure — off-balance-sheet assets
(1) When an Islamic banking business firm calculates its total exposure measure, it must include all off-balance-sheet items (for example, letters of credit, guarantees, unconditionally cancellable commitments, liquidity facilities, and Shara'a-compliant repo and securities financing transactions).
(2) A 100% credit conversion factor applies to all off-balance-sheet items, except that a credit conversion factor of 10% applies to a commitment that can be unconditionally cancelled at any time without notice.
(3) Securitised assets that are de-recognised from the balance-sheet of the sponsor or originator are not to be taken into account.
|Inserted by QFCRA RM/2019-7 (as from 1st January 2020).|