View source for Capital Adequacy Standard for Institutions (other than Insur




== Top 20 FREQUENT WORDS ==
risk 399
iifs 318
asset 192
contract 182
credit 150
assets 109
supervisory 109
istisn<U+0101> 105
mush<U+0101>rakah 103
customer 99
applicable 94
based 88
price 88
amount 87
exposure 74
salam 73
suk<U+016B>k 71
project 70
business 68
ij<U+0101>rah 67



== DOCUMENT KEY POINTS ==
*sultan bin nasser al suwaidi governor central bank of united arab emirates in alphabetical order of the country which the member represents i
*pehin dato paduka haji minister of finance ii ministry of finance brunei abdul rahman bin haji ibrahim h

*chambour central bank of lebanon mister mansur ur rehman khan state bank of pakistan mister mu jib turki al turki qatar central bank mister ibrahim adam habib bank of sudan in alphabetical order of the country which the member represents capital adequacy working group chairman dato mohd razif abdul kadir a bank negara malaysia deputy chairman doctor abdulrahman a
*siregar a bank indonesia members doctor dadang muljawan bank indonesia doctor habib ahmed islamic development bank doctor maher hassan central bank of jordan mister faisal abdullah al lafi central bank of kuwait mister mohammad faiz mohammad azmi pricewaterhouse coopers malaysia mister faheem ahmad jcr vis credit rating company limited pakistan mister alaa eldin m

*the objectives of the standard are to f address the specific structure and contents of the shar ah compliant products and services offered by the iifs that are not specifically addressed by the currently adopted and proposed international capital adequacy standards and shar ah compliant mitigation and f standardise the approach in identifying and measuring risks in shar ah compliant products and services and in assigning risk weights rw thereto thereby creating a level playing field amongst the iifs in adopting and developing risk identification and measurement practices that meet internationally acceptable prudential standards

*in the case of the profit sharing instruments mush rakah and mu rabah the exposure is of the nature of an equity position not held for trading similar to an a equity position in the banking book as described in basel ii and is likewise dealt with under credit risk except in the case of investments normally short term in assets for trading purposes which are dealt with under market risk
*the standard is divided into seven sections c to c where the minimum capital adequacy requirements for both credit and market risks are set out for each of the shar ah compliant financing and investment instruments c mur bahah and mur bahah for the purchase orderer c salam and parallel salam c istisn and parallel istisn c ij rah and ij rah muntahia bittamleek c mush rakah and diminishing mush rakah c mu rabah and c suk k held as investment in the banking book

*while it is not the intention of the ifsb to require iifs to change the way they manage the business and risks iifs are required to use the substance of the shar ah rules and principles governing the contracts of these instruments to form the basis for an appropriate treatment in deriving their minimum capital adequacy requirements
*the shar ah rules and principles whereby iah provide funds to the iifs on the basis of profit sharing and loss bearing mu rabah contracts or on the basis of agency for an agreed upon fee instead of debt based deposits ie lending money to the iifs would mean that the iah would share in the profits of a successful operation but could also lose all or part of their investments

*the iifs are to refer to their supervisory authorities for eligible external credit assessment institutions ecai that are to be used in assigning credit ratings for the purpose of calculating credit risk weights f credit risk mitigation techniques adopted by the iifs f types of the underlying assets that are sold and collateralised or leased by the iifs and f amount of specific provisions made for the overdue portion of accounts receivable or lease payments receivable
*credit risk exposures in islamic financing arise in connection with accounts receivable in mur bahah contracts counterparty risk in salam contracts accounts receivable and counterparty risk in istisn contracts and lease payments receivable in ij rah contracts and sukuk held to maturity in the banking book

*an administrative body owned by the government or a local authority may be treated in the same manner as iifs even though it has sovereign immunity but has no power of raising revenue or a specific institutional arrangement

*the iifs s selling price shall be based on the fair value of the partnership share being transferred on the date of each purchase or at the price agreed upon at the time of entering into the contract which may expose the iifs to the risk of selling its share of ownership below the acquisition price
*an iifs may hold investments made under profit sharing and loss bearing mode mu rabah and profit and loss sharing mode mush rakah that are made not for trading or liquidity purposes but for the purpose of earning investment returns from medium to long term financing

*the amounts due from the partner to purchase the agreed shares of the asset on the agreed dates are subject to credit risk in respect of the partner s ability and willingness to pay with the partner s shares of the asset providing credit risk mitigation as collateral
*the crm techniques that are commonly employed by the iifs are as follows a hamish jiddiyyah security deposit held as collateral hamish jiddiyyah hj a refundable security deposit taken by the iifs prior to establishing a contract carries a limited recourse to the extent of damages incurred by the iifs when the purchase orderer fails to honour a binding promise to purchase pp or promise to lease pl

*

*e suk k that are unrated by an ecai but fulfil each of the following criteria i issued by an iifs or a conventional bank or a sovereign ii listed on a recognised exchange iii all other rated issues by the iifs or conventional bank of the same seniority of at least bbb or a p by a recognised ecai as determined by the supervisory authorities iv the iifs which incurs the exposure or is holding the collateral has no information to suggest that the issue would justify a rating below bbbor a p and v the supervisory authorities are sufficiently confident about the market liquidity of the securities
*capital relief against the collateral can be granted based on either one of the following a simple approach the iifs can substitute the rw of the collateral for the rw of the counterparty for the collateralised portion of the exposure subject to the collateral being pledged for at least the duration of the contract

*

*

*for the tranche of the ij rah facility for the tranche of the mur bahah that does not exceed of the facility that does not exceed of market value of the leased cre the market value of the collateralised provided the iifs is able to show cre provided the iifs is able to that its total losses from cre show that its total losses from cre financing mur bahah or ij rah do financing mur bahah or ij rah do not exceed
*commercial the rw shall be but in the rw shall be but in real estate exceptional circumstances for wellexceptional circumstances for well cre developed and long established developed and long established markets mur bahah for and markets ij rah for office and or collateralised by office and or multimulti purpose premises and or multipurpose premises and or multitenanted premises may have the tenanted premises may have the potential to receive a preferential potential to receive a preferential rw of this being subject to the rw of this being subject to the supervisor s discretion

*the provision for general market risk will depend on the residual term to maturity or to the next repricing date using a simplified form of the maturity method on the net positions in each time band in accordance with the table below residual term to maturity rw month or less
*the capital charge for securities in iifss trading book comprises two charges that are separately calculated for the following types of risk a specific risk the capital charge for specific risk is on all long equity positions and must be calculated on a market by market basis for each national market

*the use of an internal models approach by an iifs is subject to the supervisory authority s explicit approval and fulfilment of qualitative standards specifications of market risk factors being captured into the iifs s risk management system quantitative standards comprehensive stress testing program and validation of the models by external auditors and or supervisory authorities
*this section sets out the minimum capital requirements to cover the risks of holding or taking long positions in commodities including precious metals but excluding gold and silver which falls under foreign exchange risk as set out in paragraphs to as well as the inventory risk which results from iifs holding assets with a view to re selling or leasing them

*under the simplified approach as applied to commodities the net position long or shot in each commodity requires a capital charge of to cater for directional risk plus an additional capital charge of of the gross positions ie long plus short positions to cater for basis risk
*of the net position carried forward in respect of each time band that the net position is carried forward

*the list is not conclusive and may vary according to the views of the various shar ah supervisory board ssb a mur bahah and ij rah contracts f the asset is in existence at the time of sale or lease or in case of ij rah the lease contract should be preceded by acquisition of the usufruct of that asset except if the asset was agreed upon based on a general specification
*under the standardised approach this percentage varies according to the line of business lob from to being for corporate finance trading and sales and payment and settlement to for commercial banking and agency services and for retail banking asset management and retail brokerage

*gross income is defined as a net income from financing activities which is gross of any provisions and operating expenses and of depreciation of ijarah assets b net income from investment activities and c fee income e
*therefore the iifs is not required to set aside any additional amount over and above the of average annual gross income over the preceding three years for operational risk

*the term displaced commercial risk refers to the risk arising from assets managed on behalf of iah which is effectively transferred to the iifs s own capital because the iifs follows the practice of foregoing part or all of its mu rib share of profit on such funds when it considers this necessary as a result of commercial pressure in order to increase the return that would otherwise be payable to the iah
*in practice however the iifs may forgo its rights to some or all of its mu rib share of profits in order to offer its iah a more competitive rate of return on their funds or may be treated as constructively obliged to do so by the supervisory authority as a measure of investor protection and in order to mitigate potential systemic risk resulting from massive withdrawals of funds by dissatisfied iah

*in such an environment the supervisory authority has discretion to require the iifs to which the circumstances mentioned in paragraphs and apply to include a specified percentage of assets financed by psia in the denominator of the car represented by in the supervisory discretion formula as set out in appendix a

*the iifs is exposed to counterparty risk in the event that the orderer in a binding mpo does not honour his her obligations under the pp resulting in the iifs selling the asset to a third party at a selling price which may be lower than the cost to the iifs
*this section sets out the minimum capital adequacy requirement to cover the credit and market risks arising from entering into contracts or transactions that are based on the shar ah rules and principles of mur bahah and mur bahah for the purchase orderer mpo

*in case a the iifs has the right to recoup any loss as indicated in the previous paragraph from the orderer that right constitutes a claim receivable which is exposed to credit risk and the exposure shall be measured as the amount of the asset s total acquisition cost to the iifs less the market value of the asset as collateral subject to any haircut and less the amount of any hj
*the accounts receivable net of specific provisions amount arising from the selling of a mur bahah asset shall be assigned a rw based on the credit standing of the obligor purchaser or guarantor as rated by an ecai that is approved by the supervisory authority

*in the case of an asset in possession in a mur bahah transaction and an asset acquired specifically for resale to a customer in a non binding mpo transaction the asset would be treated as inventory of the iifs and using the simplified approach the capital charge for such a market risk exposure would be of the amount of the position carrying value which equates to a rw of
*subject to meeting the minimum requirements as set out in paragraph the rw of collateralised mur bahah may be given preferential rw as set out below for the following types of collateralised asset a c for retail customers or working capital financing a c for a mur bahah contract secured by a residential real estate unless otherwise determined by the supervisory authorities or a c for a mur bahah contract secured by a commercial real estate or in a exceptional circumstances the supervisory authority has discretion to apply these preferential rw under appropriate circumstances

*b binding mpo applicable stage of the credit rw market risk capital charge contract asset available for sale asset asset acquisition cost less not applicable on balance sheet market value of asset as collateral net of any haircut less any hj x rw see paragraphs to asset is sold and delivered to based on customer s rating or not applicable a customer accounts rw for unrated receivable is due from a customer see paragraph customer maturity of contract term or not applicable not applicable upon full settlement of the selling price whichever is earlier also includes an asset which is in possession due to cancellation of pp by a customer
*if the iifs has no such right the cost of the asset to the iifs constitutes a market risk as in the case on a non binding mpo but this market risk exposure is reduced by the amount of any hj that the iifs has the right to retain

*the iifs is exposed to the a credit counterparty risk of not receiving the purchased commodity after disbursing the purchase price to the seller and b price risk that the iifs incurs from the date of execution of a salam contract which is applicable throughout the period of the contract and beyond the maturity date of the contract as long as the commodity remains on the balance sheet of the iifs
*this section is applicable to a salam contracts that are executed without any parallel salam contracts and b salam contracts that are backed by independently executed parallel salam contracts

*the long and short positions in a commodity which are positions of salam and parallel salam may be offset under either approach for the purpose of calculating the net open positions provided that the positions are in the same group of commodities
*the credit exposure amount of a salam contract is not to be offset against the exposure amount of a parallel salam contract as an obligation under one contract does not discharge an obligation to perform under the other contract

*rw equivalent on gross positions ie salam exposures plus receipt of the purchased not applicable parallel salam exposures commodity by the iifs see paragraphs to the purchased commodity is not applicable not applicable sold and delivered to a buyer b salam without parallel salam applicable stage of the credit rw market risk capital charge contract payment of purchase price by based on customer s rating or the simplified approach the iifs to a salam customer rw for unrated capital charge
*seller customer rw equivalent on long position of salam exposures see paragraphs to see paragraph receipt of the purchased not applicable commodity by the iifs the purchased commodity is not applicable not applicable sold and delivered to a buyer

*an istisn contract refers to an agreement to sell to or buy from a customer a nonexistent asset which is to be manufactured or built according to the ultimate buyer s specifications and is to be delivered on a specified future date at a predetermined selling price

*

*the credit rw is to be applied from the date when the manufacturing or construction process commences and until the selling price is fully settled by the iifs either in stages and or on the maturity of the istisn contract which is upon delivery of the manufactured asset to the istisn ultimate buyer
*there is no capital charge for market risk to be applied in addition to provisions in paragraphs to above subject to there being no provisions in the parallel istisn contract that allow the seller to increase or vary its selling price to the iifs under unusual circumstances

*capital charge inventory rating or rw for unrated equivalent to rw on buyer work in process inventory see paragraphs to progress billing to customer based on ultimate buyer s not applicable rating or rw for unrated buyer see paragraphs to maturity of contract term or not applicable not applicable upon full settlement of the purchased price by an istisn buyer whichever is the earlier

*this section sets out the minimum capital requirements to cater for the lessor s exposures to a the credit risk of the lessee as counterparty in servicing the lease rentals and b the market price risk attaching to the residual value of the leased asset either at the end of the ij rah contract or at the time of repossession upon default ie the risk of losing money on the resale of the leased asset
*this section sets out the minimum capital requirement to cover counterparty risk and residual value risk of leased assets arising from an iifs entering into contracts or transactions that are based on the shar ah rules and principles of ij rah and ij rah muntahia bittamleek imb also known as ij rah wa iqtin

*in a pl which can only be binding when an iifs is exposed to default on the lease orderer s obligation to execute the lease contract the exposure shall be measured as the amount of the asset s total acquisition cost to the iifs less the market value of the asset as collateral subject to any haircut and less the amount of any a urb n received from the lease orderer
*the applicable rw shall be based on the standing of the obligor as rated by an ecai that is approved by the supervisory authority and in the case the obligor is unrated a rw of shall apply

*in the event that the lessee exercises its right to cancel the lease the lessor is exposed to the residual value of the leased asset being less than the refund of payments due to the the amount can only be deducted for damages ie difference between the asset acquisition cost and the total of lease rentals when the asset is leased to a third party or selling price when the asset is sold to a third party whichever is applicable
*in the case of an asset acquired and held for the purpose of either operating ij rah or imb the capital charge to cater for market price risk in respect of the leased asset from its acquisition date until its disposal can be categorised into the following a non binding pl the asset for leasing will be treated as inventory of the iifs and using the simplified approach the capital charge applicable to such a market risk exposure would be of the amount of the asset s market value equivalent to a rw of

*less recovery value of the leased asset maturity of contract term and not applicable capital charge of the the leased asset is returned to carrying value of the asset the iifs this credit rw is applicable only when iifs will have recourse to any hamish jiddiyyah paid by the customer and depending on the legal situation may have a right to recoup from the customer any loss on leasing or disposing of the asset to a third party after taking account of the a urb n
*the following tables set out the applicable period of the contract that attracts capital charges operating ij rah applicable stage of the credit rw market risk capital charge contract asset available for lease prior binding pl non binding pl to signing a lease contract asset acquisition cost capital charge equivalent to

*rw for an unrated lessee less recovery value of the leased asset maturity of contract term and not applicable not applicable the leased asset is sold and the asset ownership is transferred to the lessee this credit rw is applicable only when iifs will have recourse to any hamish jiddiyyah paid by the customer and depending on the legal situation may have a right to recoup from the customer any loss on leasing or disposing of the asset to a third party after taking account of the a urb n
*rw equivalent until lessee less a market value of asset takes possession fulfilling function of collateral net of any haircuts and b any hamish jiddiyyah multiply with customer s rating or rw for unrated customer upon consigning a leasing total estimated value of lease not applicable contract and the lease rental receivables for the whole payments are due from the duration of leasing contract will lessee be risk weighted according to the lessee s credit rating

*this section sets out the minimum capital adequacy requirement to cover the risk of losing invested capital arising from entering into contracts or transactions that are based on the shar ah rules and principles of mush rakah and diminishing mush rakah where the iifs and their customers partner s contribute to the capital of the partnership and shares its profit or loss
*as a partner to a mush rakah contract the iifs is not entitled to a fixed rate of return and is thus exposed to variable profits generated by the partnership which are shared on a basis as agreed in the mush rakah contract whereas losses are to be borne by the iifs and its partners according to their respective ratio of invested capital

*the amounts due from the partner to purchase the agreed shares of the asset on the agreed dates are subject to credit risk in respect of the partner s ability and willingness to pay with the shares of the partner in the asset providing credit risk mitigation as collateral
*for mush rakah the equity exposure can be measured based on the nature of the underlying investments as follows a for investments held in the trading book exposure is equal to the fair value and b for investments held to maturity exposure is equal to the historical cost less any provisions for impairment

*ii slotting method an iifs is required to map its rw into four supervisory categories as set out in the appendix b specialised financing and the appendix c diminishing mush rakah where the rw of each category is as follows supervisory categories strong good satisfactory weak risk weights the above rw under the slotting for specialised financing include an additional fixed factor of rw to cater for potential decline in the mush rakah s net asset value
*c joint ownership of real estate and movable assets such as cars mush rakah with ij rah sub contract income producing mush rakah through leasing to third parties by means of ij rah contracts exposes the capital contributor to the risk of that underlying ij rah contract ie counterparty risk mitigated by the value of leased assets

*the equity exposure in a diminishing mush rakah contract where the iifs intends to transfer its full ownership in movable assets and working capital to the other partner over the life of the contract is calculated based on the remaining balance of the amount invested measured at historical cost including any share of undistributed profits less any specific provision for impairment

*for the purpose of calculating the minimum adequacy capital requirement this section makes distinctions between the three main categories of mu rabah as set out below a private commercial enterprise to undertake trading activities in foreign exchange shares or commodities this type of mu rabah exposes the iifs to the risk of the underlying activities namely foreign exchange equity or commodities
*a mu rabah financing can be carried out on either a a restricted basis where the capital provider allows the mu rib to make investments subject to specified investment criteria or certain restrictions such as types of instrument sector or country exposures or b an unrestricted basis where the capital provider allows the mu rib to invest funds freely based on the latter s skills and expertise

*in this mu rabah structure i the iifs has no direct or contractual relationship with the ultimate customer but the iifs may stipulate that payments by the ultimate customer to the mu rib be made to an account repayment account with the iifs which has been opened for the purpose of the mu rabah and from which the mu rib may not make withdrawals without the iifs s permission and ii the iifs as investor advances funds to the construction company as mu rib for the construction project and is entitled to a share of the profit of the project but must bear of any loss
*in such a case if an independent engineer employed to certify that the work has reached a certain stage of completion has issued a certificate to that effect so that a progress payment is due from the ultimate customer from the point of view of the iifs the amount of that progress payment due is no longer exposed to the risk of unsatisfactory performance by the mu rib but only to the latter s failure to pay the iifs the mu rib being exposed to possible default by the ultimate customer

*c mu rabah investment in project finance the iifs s overall credit exposure in respect of the mu rabah in such a case can be divided into three parts i the amount receivable by the iifs from the mu rib in respect of progress payments due to the mu rib from the ultimate customer for work certified as having reached a certain stage of completion a if a binding agreement exists as described in paragraph c whereby the amount will be paid by the ultimate customer into a repayment account

*in the absence of such an agreement the rw would reflect the credit standing of the mu rib or for unrated ii the amount held in the repayment account with the iifs which would have a risk weighting of iii any remaining balance of the funds advanced by the iifs to the mu rib which would incur a rw of unless otherwise rated the treatment as set out in paragraph b applies

*after certification where based on the credit standing of not applicable amount receivable by the iifs the ultimate customer on the from the mu rib in respect of amounts receivable by the iifs progress payment due to the from the mu rib or rw mu rib from the ultimate for unrated ultimate customer customer a only if a risk mitigation structure is used collateralisation of cash flows from the ultimate customer by the use of a project account held in the iifs into which the ultimate customer makes the progress payments and from which the mu rib cannot withdraw funds without the iifs s permission
*mu rabah investment in project finance applicable contract stages credit rw market risk capital charge prior to certification where risk weight is based on the not applicable funds are already advanced by rating of either the ultimate the iifs to the mu rib customer or the mu rib see paragraph c above

*as a part owner the ij rah suk k holder assumes a proportionate share of any loss if the leased asset is destroyed or of the cost of meeting the obligation to provide an alternative asset failing which the lessee can terminate the lease without paying future rentals
*this is not the same as the mush rakah or mu rabah suk k mentioned below and b equity based suk k where the returns are determined on a profit and loss sharing in the underlying investment which does not offer fairly predictable returns e

*for this type of salam suk k there is no capital charge for market risk that consists of basis and forward gap risks namely the risk that the hedge may be impaired because the underlying commodity delivered may be of inferior quality or may be delivered later than the contractual date as the underlying commodity is normally traded on an exchange that eliminates the risk of late non delivery or delivery of inferior quality of a commodity

*the treatment of mush rakah suk k is based on the intent of the underlying investments in mush rakah that can be categorised into a private commercial enterprise to undertake trading activities in foreign exchange shares or commodities the risk weights rw shall be based on the applicable underlying assets as set out in the market risk section in paragraphs to
*b private commercial enterprise to undertake business venture or project other than a the rw for equity position risk in respect of an equity exposure in a business venture or project is measured according to either the simple risk weight method or the supervisory slotting criteria approach

*suk k category credit rw market risk capital charge externally rated applicable risk weight will be not applicable based on the ecai ratings in accordance with the standardised approach non rated applicable risk weight will be applicable capital charge will based on the underlying be based on the underlying contract or on that of the issuer contract if there is recourse to the issuer
*the following table sets out the applicable credit rw and market risk capital charge depending whether the suk k do or do not have an ecai rating

*eligible capital total risk weighted assets credit market risks plus operational risks less risk weighted assets funded by restricted psia credit market risks less a risk weighted assets funded by unrestricted psia credit market risks less risk weighted assets funded by per and irr of unrestricted psia credit market risks total rwa include those financed by both restricted and unrestricted profit sharing investment accounts psia
*the per has the effect of reducing the displaced commercial risk and the irr has the effect of reducing any future losses on the investment financed by the psia

*stress analysis the project business venture the project business venture the project business venture t can meet its can meet its is vulnerable to stresses that is financial obligations under financial obligations under are not c sustained severely stressed normal stressed uncommon through an economic or sectoral economic or sectoral economic cycle and may conditions conditions

*stability of legal and favourable and stable favourable and stable regulatory changes can regulatory environment regulatory environment regulatory environment be predicted with a fair risk of change in law over the long term over the medium term level of certainty acquisition of all necessary strong satisfactory fair supports and approvals for such relief from local content laws enforceability of contracts contracts collateral and contracts collateral and contracts collateral and collateral and security security are enforceable security are enforceable security are considered enforceable even if certain non key issues may exist
*appendix b supervisory slotting criteria for istisn in limited and non recou mush rakah in a business venture strong good satisfactory political and legal environment cont d government support and project business venture of project business venture project business venture project business venture s strategic importance for considered important for may not be strategic but importance for the country the country preferably the country

*case of mush rakah project business venture is project business venture is project business venture is support as evidenced by highly strategic for the strategic for the sponsor considered important for equity ownership clause sponsor partner ie core partner ie core the sponsor partner ie and incentive to inject business and long term business and long term core business additional cash if strategy strategy necessary

*independent escrow accounts reserve funds payment of longer than average average coverage period average coverage period selling price in istisn coverage period all all reserve funds fully all reserve funds fully o m renewal and reserve funds fully funded funded in cash funded in cash replacement unforeseen in cash events etc

*appendix c supervisory slotting criteria for diminishing mush rakah strong good satisfactory financial strength market conditions the supply and demand the supply and demand market conditions are for the business venture s for the business venture s roughly in equilibrium
*stress analysis the property s resources the property can meet its during an economic contingencies and liability financial obligations under downturn the property structure allow it to meet a sustained period of would suffer a decline in its financial obligations financial stress

*appendix c supervisory slotting criteria for diminishing mush rakah strong good satisfactory cash flow predictability a for complete and the property s leases are most of the property s most of the property s stabilised property
*long term with creditworthy leases are long term with leases are medium rather tenants and their maturity tenants that range in than long term with tenants dates are scattered

*appendix c supervisory slotting criteria for diminishing mush rakah strong good satisfactory c for construction the property is entirely the property is entirely leasing activity is within phase pre leased through the pre leased or pre sold to a projections but the building tenor of the contract or creditworthy tenant or may not be pre leased

*strength of mush rakah partner s financial capacity and the partner has the partner s financial the partner is average to willingness to support the substantial resources and condition allows it to below average in financial property
*appendix c supervisory slotting criteria for diminishing mush rakah strong good satisfactory property is under construction budget is construction budget is construction budget is construction conservative and technical conservative and technical adequate and contractors hazards are limited

*appendix c supervisory slotting criteria for diminishing mush rakah strong good satisfactory reputation and track experienced management appropriate management moderate management record with similar and high partner s quality


 ''Please note, This is an auto generated summary based on sentances position in the document and other factors''
== DOCUMENT WORD ANALYSIS ==
=== Main Category ===
: AlHuda Material\islamic banking


=== KeyWords ===
islamic risk murabaha minimum iifs NA customers financing customer banking profit credit maximum shariah underlying limit service corporate required mode



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== DOCUMENT REFERENCES ==


=== Number of Pages ===
71


=== Published Date ===
2006-02-15 14:12:15


== Full Document ==


[https://www.hodhood.com/en/HodHoodDocuments/IslamicFinance/IslamicBanking/Capital%20Adequacy%20Standard%20for%20Institutions%20(other%20than%20Insur.pdf Read the Full Document]


[[Category:Islamic Finance]]

[[Category: Islamic Banking]]