Book traversal links for 7.2.4. Commodity Price Risk
7.2.4. Commodity Price Risk
Effective from Nov 23 2011 - Nov 22 2011
To view other versions open the versions tab on the right
Commodity price risk is the risk to the earnings or capital of the banks, particularly those engaged in Sharia’h compliant banking, that results from the current and future volatility of market values of specific commodities. If a bank is exposed to commodity price fluctuations, it should develop appropriate scenarios to conduct stress test for commodity price risk. The bank should assesses the impact of changes in commodity prices on its profitability and capital adequacy.