IBANK Part 2 Definitions

absolute value of a number means the value of the number irrespective of sign.

accounting standards include accounting rules, principles, practices and conventions.

additional tier 1 capital has the meaning given by rule 3.2.10.

affiliate, of a party, means any entity of which the party holds 10% or more, but less than a majority, of the voting power.

approved website means a website that is approved under the Interpretation and Application Rules 2005, rule 3.1.2.

authorisation means an authorisation granted under FSR, Part 5.

authorised firm (or firm) means a person that has an authorisation.

base capital requirement has the meaning given by rule 3.2.4.

Basel III LCR: see Part 8.4, note.

Basel Accords is the collective name for Basel I, Basel II and Basel III, which are a set of reform measures issued by the Basel Committee on Banking Supervision to improve the regulation, supervision, risk management and capital adequacy of financial institutions.

branch means the local office in the QFC of a legal person incorporated outside the QFC.

business day means a day that is not a Friday, a Saturday, or a public or bank holiday in Qatar.

capital adequacy ratio has the meaning given by rule 3.2.6.

capital conservation buffer has the meaning given by rule 3.3.1 (2).

capital relief is the reduction, in the credit risk capital requirement for an exposure, obtained from the use of a CRM technique.

cash collateral has the meaning given by rule 4.6.10.

commodity murabahah transaction (or CMT) has the meaning given by rule 1.3.6 (2).

common equity tier 1 capital (or CET 1 capital) has the meaning given by rule 3.2.8.

compliance oversight function has the same meaning as in CTRL.

connected, in relation to a party, has the meaning given by rule 5.1.3.

corporate group has the meaning given by rule 9.1.2 (1).

counter-cyclical capital buffer has the meaning given by rule 3.3.1 (3).

counterparty means any person with or for whom an Islamic banking business firm conducts, or intends to conduct, Islamic banking business, Islamic investment business or associated business.

credit enhancement, of sukuk, has the meaning given by rule 10.2.16.

credit risk has the meaning given by rule 4.1.2.

credit risk capital requirement means the amount of capital that an Islamic banking business firm must have to cover its credit risk.

CTRL means the Governance and Controlled Functions Rules 2020.

customer means a person to whom an Islamic banking business firm provides, has provided or offers to provide a service or product, and includes a business customer of the firm (within the meaning given in CIPR).

day means a period of 24 hours starting at midnight.

displaced commercial risk (or DCR) has the meaning given by rule 11.2.2 (2).

eligible collateral means collateral that complies with the requirements in rule 4.6.8 or rule 4.6.9.

eligible guarantor has the meaning given by rule 4.6.16.

eligible netting agreement has the meaning given by rule 4.6.19.

entity means any kind of entity, and includes, for example, any person.

equity participation risk has the meaning given by rule 1.3.24 (1).

excess spread has the meaning given by rule 10.2.19.

executive governance function has the same meaning as in CTRL.

exercise control: an entity (entity A) exercises control over another (entity B) if:

(a) entity A holds 10% or more of the shares of entity B, or is entitled to exercise or control the exercise of 10% or more of the voting power in entity B;
(b) entity A holds 10% or more of the shares in a parent entity of entity B or is entitled to exercise or control the exercise of 10% or more of the voting power in a parent entity of entity B; or
(c) entity A is able to exercise significant influence over the management of entity B or a parent entity of entity B because of entity A's shareholding or voting power, or by contractual or other arrangements.

exposure means the maximum loss that an Islamic banking business firm might suffer as a result of the default or failure of a counterparty, connected counterparties, issuer or connected issuers.

external credit rating agency (or ECRA) means:

(a) Moody's Investors Service;
(b) Fitch Ratings;
(c) Standard & Poor's;
(d) a rating agency that is affiliated with one of the agencies mentioned in paragraphs (a) to (c);
(e) Islamic International Rating Agency, B.S.C; and
(f) any other agency approved by the Regulatory Authority.

finance function has the same meanings as in CTRL.

financial communication, by an Islamic banking business firm, means any communication (made through any medium including brochures, telephone calls and presentations) the purpose or effect of which is:

(a) to promote or advertise the firm's services or products; or
(b) to invite or induce any person to enter into an agreement with any person in relation to those services or products.

financial group has the meaning given by rule 9.1.2 (2).

governing body of an entity means its board of directors, committee of management or other governing body (whatever it is called).

home jurisdiction, for an entity, means the jurisdiction where the entity's authorisation or licence was granted.

home regulator, for an entity, means the financial regulator in the jurisdiction in which the entity's authorisation or licence was granted.

IFSB–12: see Part 8.4, note.

IFSB GN 6: see Part 8.4, note.

ijarah muntahia bittamleek (or IMB) has the meaning given by rule 1.3.13.

impaired credit has the meaning given by rule 4.3.5 (1).

internal audit function has the same meaning as in CTRL.

internal capital adequacy assessment process (or ICAAP) has the meaning given by rule 3.1.5.

investment grade means a rating of at least BBB- or equivalent.

investment risk reserve (or IRR) has the meaning given by rule 11.2.5 (5).

investments includes Islamic investments.

Islamic bank has the meaning given by rule 1.1.7.

Islamic banking business has the meaning given by rule 1.1.5.

Islamic banking business firm has the meaning given by rule 1.1.9.

Islamic financial contract includes the contracts for raising funds or providing financing in a Shari'a-compliant manner described in Part 1.3.

Islamic financial institution means an authorised firm whose authorisation includes a condition that the whole of the firm's business must be conducted in accordance with Shari'a.

Islamic investment business has the meaning given by rule 1.1.6.

Islamic investment dealer has the meaning given by rule 1.1.8.

Islamic investments has the meaning given by rule 1.1.6 (2).

jurisdiction means any kind of legal jurisdiction, and includes, for example:

(a) the State of Qatar;
(b) a foreign country (whether or not an independent sovereign jurisdiction), or a state, province or other territory of such a foreign country; and
(c) the QFC or a similar jurisdiction.

large exposure has the meaning given by rule 5.3.1.

legal person means an entity (other than an individual) on which the legal system of a jurisdiction confers rights and imposes duties, and includes, for example, any entity that can own, deal with or dispose of property.

liquidity facility, for sukuk, has the meaning given by rule 10.4.6 (3).

liquidity risk has the meaning given by rule 8.1.1 (3).

mark-to-market has the meaning given by rule 6.1.10 (1).

mark-to-model has the meaning given by rule 6.1.11 (1).

minimum capital requirement has the meaning given by rule 3.2.3 (2).

monetise means convert into cash (whether by sale, repo or in any other way).

month means calendar month — that is, the period beginning at the start of any day of one of the 12 named months of the year and ending:

(a) at the end of the day before the corresponding day of the next named month; or
(b) if there is no corresponding day — at the end of the last day of next named month.

murabahah for purchase orderer contract (or MPO contract) has the meaning given by rule 1.3.4.

parent entity, for a legal person (A), means any of the following:

(a) a legal person that holds a majority of the voting power in A;
(b) a legal person that is a member of A (whether direct or indirect, or though legal or beneficial entitlement) and alone, or together with 1 or more legal persons in the same corporate group, holds a majority of the voting power in A;
(c) a parent entity of any legal person that is a parent entity of A.

Note Legal person and corporate group are defined in this glossary.

person means:

(a) an individual (including an individual occupying an office or position from time to time); or
(b) a legal person.

potential future credit exposure has the meaning given by rule 4.4.11 (3).

problem asset has the meaning given by rule 4.1.3(3).

profit equalisation reserve (or PER) has the meaning given by rule 11.2.5 (4).

profit-sharing investment account (or PSIA) has the meaning given by rule 11.1.2.

profit rate risk in the trading book has the meaning given by rule 6.6.1

qard has the meaning given by rule 1.3.25.

rate of return risk (or ROR risk) has the meaning given by rule 11.2.1 (1).

recognised exchange means an exchange set out in Schedule 1 or in a notice published by the Regulatory Authority on an approved website.

regulated activity means an activity that is a regulated activity under FSR.

Regulatory Authority means the Qatar Financial Centre Regulatory Authority.

regulatory capital has the meaning given by rule 3.2.7.

related party, of an Islamic banking business firm, has the meaning given by rule 4.8.3.

restricted PSIA has the meaning given by rule 11.1.2 (3).

retained securitisation exposure has the meaning given by rule 10.4.1.

risk-based capital requirement has the meaning given by rule 3.2.5.

risk management function has the same meanings as in CTRL.

Rules means rules made by the Regulatory Authority under FSR, article 15 (1), and includes:

(a) any standard, principle or code of practice made by the authority; and
(b) any other instrument made or in force under any Rules.

senior executive function has the same meanings as in CTRL.

Shari'a supervisory board, of an Islamic banking business firm, means the board appointed for the firm under rule 12.1.2.

special purpose entity or SPE has the meaning given by rule 10.2.7.

subsidiary: a legal person (A) is a subsidiary of another legal person (B) if B is a parent entity of A.

sukuk has the meaning given by rule 10.1.2.

tawarruq has the meaning given by rule 1.3.6 (1).

terms of business (of an Islamic banking business firm for a customer) means a statement or statements in writing of the terms on which the firm will conduct business with or for the customer.

tier 2 capital has the meaning given by rule 3.2.12.

total risk-weighted assets has the meaning given by rule 3.2.1 (2).

unrestricted PSIA has the meaning given by rule 11.1.2 (2).

withdrawal risk has the meaning given by rule 11.2.2 (1).

writing means any form of writing, and includes, for example, any way of representing or reproducing words, numbers, symbols or anything else in legible form (for example, by printing or photocopying).

Amended by QFCRA RM/2019-4 (as from 1st January 2020)
Amended by QFCRA RM/2020-3 (as from 1st January 2021).