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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
Rulebook Modules
Prudential — Investment, Insurance Intermediation and Banking Module (PIB) [VER33/02-19]
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  Versions
(1 version)
 
Dec 9 2012 onwards

PIB 4.10.1

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The definitive version of DFSA handbook text is the PDF version as that is the text of the instrument as made and published by the DFSA.

To view past versions of this module in PDF format, please visit the Archive.

An Authorised FirmG must categorise any CR ExposureG that is not past due for more than 90 days into one of the following asset classes:

(a) cash items, which consist of:
(i) cash and cash equivalents;
(ii) gold bullion held in the vaults of the Authorised FirmG or on an allocated basis in the vaults of another entity to the extent that it is backed by gold bullion liabilities; and
(iii) all receivable funds arising from transactions that are settled on a DvP basis which are outstanding up to and including the 4th business day after the settlement date;
(b) central government and Central BankG asset class, which consists of any CR ExposureG to a central government or Central BankG ;
(c) the PSE asset class, which consists of any CR ExposureG to a PSE;
(d) the MDB asset class, which consists of any CR ExposureG to an MDB;
(e) bank asset class, which consists of any CR ExposureG to a banking institution;
(f) corporate asset class, which consists of any CR ExposureG to any corporation, partnership, sole proprietorship or trustee in respect of a trust, other than ExposuresG categorised in sub-paragraphs (a) to (e), (g) and (h);
(g) regulatory retail asset class, which consists of any CR ExposureG meeting all of the following conditions:
(i) the ExposureG is to an individual, a group of individuals, or a small business;
(ii) the ExposureG takes the form of any of the following:
(A) revolving credit and lines of credit, including credit cards and overdrafts;
(B) personal term loans and leases, including instalment loans, vehicle loans and leases, student and educational loans;
(C) small business credit facilities and commitments; or
(D) any other product which the DFSAG may specify from time to time;
(iii) the ExposureG is one of a sufficient number of ExposuresG with similar characteristics such that the risks associated with such lending are reduced; and
(iv) the total ExposureG to any obligor or group of obligors is not more than $2 million;
(h) residential mortgage asset class, which consists of any CR ExposureG meeting all of the following conditions:
(i) the ExposureG is to an individual or a group of individuals, or if the ExposureG is to an entity other than an individual, the Authorised FirmG can demonstrate to the DFSAG (if required to do so) that it has robust processes to ascertain that the ExposureG is structured to replicate the risk profile of an ExposureG to an individual or a group of individuals and that it is able to identify and manage the legal risks that arise in such structures;
(ii) the ExposureG is secured against a first lien mortgage:
(A) of a completed residential property; or
(B) on an exceptional basis of an uncompleted residential property in a jurisdiction approved by the DFSAG ;
(iii) the ExposureG is not classified as an impaired asset in accordance with RulesG in this module; and
(iv) the ExposureG is not to a corporation, partnership, sole proprietorship or trustee in respect of a trust where such corporation, partnership, sole proprietorship or trust is engaged in residential building, development or management;
(i) the commercial real estate asset class, which consists of any CR ExposureG meeting all of the following conditions:
(i) the ExposureG is to a corporation, partnership, sole proprietorship or trustee in respect of a trust; and
(ii) the ExposureG is secured by commercial real estate; or
(j) other ExposuresG asset class, which consists of any CR ExposureG which does not fall within any of the categories in sub-paragraphs (a) to (i).
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]