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Article (6) Risk Measurement and Use of Models for IBs

CBUAE/BSD N 1198/2021 Effective from 25/2/2021
  1. 6.1The risk assessment and measurement processes undertaken by IBs must specifically address the risk of loss arising from Mudaraba, Musharaka and Wakala contracts, where applicable. Rigorous risk evaluation (including due diligence) must be adequately conducted in view of the exposure to capital impairment.