Table II.

Rating points for portfolio

FactorsPointsWeightDescription
Panel A: Collections   
Deposits management
(Loan accounts and
Investment accounts)
0824%Includes 01 point for current deposits, 03 points for investment deposits’ management system, 02 points for qarḍ ḥasan, and 02 points for discouraging hibah practices
Panel B: Investments   
Non-participatory modes
Selling (murābaḥah, salam, istiṣnāʿ)
Leasing (ijārah)
1029%Marks should be reduced if the share of debt-based modes increases above 50% in financing and investments. Also, more marks are recommended for salam, istiṣnāʿ and ijārah on account of riskiness
Participatory modes
(mushārakah and
muḍārabah)
Mortgages
Marketable securities
1647%16 points within the portfolio are suggested for the most preferred sources of financing and investments. Further, such points may be distributed equally among mushārakah and muḍārabah, mortgages and marketable securities
Total34100Overall, a score of 34 points is allocated for the main activities of an Islamic bank due to importance in achieving the objective of Sharīʿah compliance

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