IBANK 6.6.7 Maturity Method
(1) In the maturity method, long or short positions in debt securities, Shari'a-compliant hedging instruments and other sources of profit rate exposures are allocated to the time bands in table 6.6.8A (and then to the zones in table 6.6.8B) based on residual maturity and profit rate.
(2) An Islamic banking business firm must allocate:
(a) positions in fixed-rate instruments according to their residual term to maturity; and
(b) positions in floating-rate instruments according to the residual term to the next re-pricing date.
(3) The firm may offset:
(a) long and short positions (whether actual or notional) in identical instruments with exactly the same issuer, profit rate, currency and maturity; and
(b) matched swaps and binding unilateral promises that satisfy the criteria in rule 6.6.13.
|Derived from QFCRA RM/2015-2 (as from 1st January 2016).|