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V. Shari’ah Implementation

C 52/2017 STA Effective from 1/12/2022

20.Banks offering Islamic financial services that use Shari’ah Compliant alternatives to derivatives and Securities financing transactions (SFTs) approved by their internal Shari’ah control committees should calculate the risk weighted asset (RWA) for Credit Valuation Adjustment (CVA) of these Shari’ah compliant alternatives in accordance with provisions set out in this standard/guidance and in the manner acceptable by Shari’ah. This is applicable until relevant standards and/or guidance in respect of these transactions are issued specifically for banks offering Islamic financial services