IBANK 8.4.24 Treatment of maturing PSIAs

(1) The runoff rates for PSIAs that mature with the relevant 30-calendarday period are as set out in table 8.4.24.

Table 8.4.24 Maturing PSIAs — runoff rates

Item Kind of PSIA Runoff rate (%)
1 Restricted PSIAs:  
 
•    stable (covered by a Shari'a-compliant deposit insurance scheme that meets all of the additional criteria in rule 8.4.23 (7))
3
 
•    other stable (according to the criteria in rule 8.4.23 (4))
5
 
•    less stable
10
2 Unrestricted PSIAs:  
 
•    stable (covered by a Shari'a-compliant deposit insurance scheme that meets all of the additional criteria in rule 8.4.23 (7))
3
 
•    other stable (according to the criteria in rule 8.4.23 (4))
5
 
•    less stable
10
(2) If a firm cannot readily identify a PSIA as stable in accordance with the criteria in rule 8.4.23 (4), it must treat the full amount of the PSIA as less stable. A PSIA of which the returns are not subject to treated as less stable.
(3) The firm may exclude from total expected cash outflows the cash outflows related to PSIAs with residual maturity, or a notice period for withdrawal, longer than 30 calendar days only if:
(a) the IAH concerned has no legal right to withdraw the PSIA within the 30-calendar-day period; or
(b) early withdrawal would result in a significant reduction of profit that is materially greater than the loss of profit for the period.
(4) However, if the practice of the firm is to allow IAHs to withdraw such PSIAs within the 30-calendar-day period without imposing the corresponding reduction of profit, each such PSIA must be treated in full as a demand deposit unless the Regulatory Authority approves otherwise.
Inserted by QFCRA RM/2018-2 (as from 1st May 2018).