Sukuk issuance for Meeting Basel III Capital Adequacy Requirements: a shariah analysis of Maybank Tier 1 sukuk

Bello, Nabil and Hasan, Aznan (2018) Sukuk issuance for Meeting Basel III Capital Adequacy Requirements: a shariah analysis of Maybank Tier 1 sukuk. In: 6th ASEAN Universities International Conference on Islamic, Finance (6th AICIF), Manila Hotel, Manila. (Unpublished)

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Abstract

The purpose of this paper is to examine sukuk structures as a regulatory capital instrument for meeting Additional Tier 1 (AT1) capital under Basel III capital adequacy requirements and the Bank Negara Malaysia framework. The most important issues examined are the Shariah issues underlying the sukuk structures such as the subordination in structuring equity-based sukuk. As a case study, the Maybank AT1 sukuk issued in December 2017 based on wakalah bi al-istithmar sukuk was analysed. Data was collected from the documents related to the sukuk and analysed the contents thematically. The study finds that the Shariah principle in the sukuk, even though called wakalah bi al-istithmar sukuk, possesses more of a musharakah structure. The study is the first known study that examines the wakalah bi al-istithmar sukuk and particularly the Maybank AT1 sukuk for meeting Basel III capital requirements. The study will serve as an important reference for structuring sukuk for meeting capital requirements

Item Type:	Conference or Workshop Item (Invited Papers)
Additional Information:	Incomplete evidence. The supporting document is not available. - SK, 23/06/2021
Uncontrolled Keywords:	Additional Tier 1 (AT1), Maybank sukuk, Basel III, wakalah bi al-istithmar
Subjects:	BPH Islamic Economics
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Dr Aznan Hasan
Date Deposited:	23 Jun 2021 20:08
Last Modified:	23 Jun 2021 20:08
URI:	http://irep.iium.edu.my/id/eprint/89887

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