IBANK 9.2.3 Solo Limits to Apply to Group

Unless the Regulatory Authority directs otherwise, a prudential limit in these rules that applies to an Islamic banking business firm also applies to the firm's financial group.

Examples

1 The restriction in rule 5.3.3(2) (that the total of an Islamic banking business firm's net exposures to a counterparty or connected counterparties must not exceed 25% of its regulatory capital) applies to the firm's financial group, so that the group's net exposures to a counterparty or connected counterparties must not exceed 25% of the group's regulatory capital.
2 Similarly, the restriction in rule 5.3.3(3) (that the total of all of the firm's net large exposures must not exceed 800% of its regulatory capital) applies to the firm's financial group, so that the group's total large exposures to counterparties or connected counterparties must not exceed 800% of the group's regulatory capital.
Derived from QFCRA RM/2015-2 (as from 1st January 2016).