The minimum specific provisions for all loans should be calculated by multiplying the percentages provided in the above table by the net exposure amount. The net exposure amount is defined as the outstanding loan balance less the net realizable value of the collateral held. The collateral should be multiplied by the following discount factors to arrive at the net realizable value.
| Collateral type | Discount factor | Conditions |
| Cash (or cash equivalent) | 100% | Provided it is under legal right of set off |
| Federal Government (security or guarantee) | 100% | |
| Local Government (security or guarantee) | 100% | |
| Foreign sovereign government bonds rated BBB – or above | 100% | |
| UAE licensed Bank (security or guarantee) | 100% | |
| Foreign bank rated AA - or above (security or guarantee) | 100% | |
| Foreign bank rated BBB- but below AA - (security or guarantee) | 80% | |
| Listed Shares on a recognized stock exchange | 70% | The previous 3 months average closing price should be used.
Should be traded on a deep liquid and market. |
| Bonds or guarantees from corporations rated above BBB- | 70% | The previous 3 months average closing price should be used.
Should be traded on a deep and liquid market. |
| Residential Real Estate | 70% | Valuation should be not more than 6 months old.
The bank should have a registered first mortgage over the property.
The bank has legal certainty over its ability to take control of security in a reasonable time frame.
Interest should be immediately suspended where the time frame for taking over the security is uncertain and is expected to exceed 1 year. |
| Commercial Real Estate | 50% | Valuation should be not more than 6 months old.
The bank should have a registered first mortgage over the property.
The bank has legal certainty over its ability to take control of security in a reasonable time frame.
Interest should be immediately suspended where the time frame for taking over the security is uncertain and is expected to exceed 1 year |
| All other banks bonds or guarantees | 50% | |
| Cars, Boats, Machinery and other movables | 50% | Valuations should not be more than 3 months old
The bank should have a legal and enforceable charge over the item |
| All other corporate bonds or guarantees (not including cross or personal guarantees) | 40% | |
Where the net collateral value exceeds the outstanding loan amount, the bank is not required to take any provisions. However, the bank is required to continually assess the need to raise a specific provision and raise one should the situation change (e.g. outstanding loan amount exceeds the net realizable collateral or the collateral value deteriorates).