IBANK 8.4.32 Treatment of increased liquidity needs related to possible valuation changes on lodged collateral

The runoff rate for increased liquidity needs related to possible valuation changes on collateral lodged by an Islamic banking business firm to secure Shari'a-compliant hedging instruments and other transactions is 20% of the value of any lodged collateral that is not level 1 HQLA (net of collateral received on a counterparty basis, if the collateral received is not subject to restrictions on re-use or rehypothecation).

Inserted by QFCRA RM/2018-2 (as from 1st May 2018).