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III. Shari’ah Implementation

C 52/2017 STA Effective from 1/4/2021

55.Banks that conduct all or part of their activities in accordance with the provisions of Shari’ah laws and have exposure to risks similar to those mentioned in the Credit Risk Standard, shall, for the purpose of maintaining an appropriate level of capital, calculate the relevant risk weighted asset in line with these guidelines. This must be done in a manner compliant with the Shari’ah laws.

56.This is applicable until relevant standards and/or guidelines in respect of these transactions are issued specifically for banks offering Islamic financial services.