Including inflows (assets) and outflows (liabilities) in the time bands

140. Outflows (liabilities) must be included in the Maturity Ladder according to their earliest contractual maturity. Contingent liabilities may be excluded from the Maturity Ladder only if there is a likelihood that the conditions necessary to trigger them will not be fulfilled.

141. Inflows (assets) must be included in the Maturity Ladder according to their latest contractual maturity, except that:

(a) undrawn committed standby facilities provided by other banks are included at sight;

(b) marketable assets are included at sight, at a discount, and

(c) assets which have been pledged as Collateral are excluded from the Maturity Ladder.

Including marketable assets in the Maturity Ladder

142. Assets which are readily marketable are included in the Maturity Ladder in the sight - 8 days time band, generally at a discount to their recorded value calculated in accordance with the table below. An asset is regarded as readily marketable if:

(d) prices are regularly quoted for the asset;

(e) the asset is regularly traded;

(f) the asset may readily be sold, either on an exchange, or in a deep and liquid market for payment in cash; and

(g) settlement is according to a prescribed timetable rather than a negotiated timetable.

143. The AFSA may allow, on a case by case basis, an Islamic Bank to include a longer term asset which is relatively easy to liquidate in the sight - 8 days time band. The discount factor to be applied to types of marketable assets must be determined by reference to the following table:

144. The AFSA may vary the discounts to reflect the conditions of a particular market or institution.