IBANK 6.7.9 Treatment of Mudarabah

(1) The capital charge for a mudarabah contract depends on the category of the enterprise or asset to which the contract relates.
(2) If the contract is in relation to a private commercial enterprise to undertake trading activities in foreign exchange, shares or commodities, the capital charge depends on the underlying asset as set out in Chapter 6.
(3) If the contract is in relation to a placement in the interbank market, there is no capital charge except if the funds are invested in foreign exchange. The capital charge for a mudarabah contract where the funds are invested in foreign exchange is that calculated in accordance with Part 6.2 (foreign exchange risk).
Derived from QFCRA RM/2015-2 (as from 1st January 2016).