IBANK 4.5.10 Treatment of Qard

Under a qard contract, an Islamic banking business firm is exposed to credit risk if the borrower fails to repay the principal loan amount in accordance with the contract. Hence, the credit risk exposure arises at the time the contract becomes binding.

Table 4.5.10 Credit risk-weights for qard

stage of contract credit risk-weight
amount receivable from customer based on the customer's type and rating under Part 4.4

Derived from QFCRA RM/2015-2 (as from 1st January 2016).