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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
(2 versions)
 
Dec 9 2012 - Dec 31 2017Jan 1 2018 onwards

PIB 4.1.1 Guidance



Whole Section PDF

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.

1. This chapter imposes systems and controls pertaining to Credit RiskG , and prescribes the manner of calculation of the Credit Risk Capital RequirementG (also referred to in this module as CRCOMG ).
2. Rules PIB 3.8.2 and PIB 3.8.3 provide that the CRCOMG is a component in the calculation of the overall Risk Capital RequirementG of an Authorised FirmG , and that the CRCOMG is to be calculated in accordance with this PIB chapter 4.
3. The RulesG in PIB section 4.8 provide that the Authorised Firm'sG CRCOMG is 8% of the Credit RWAG of the firm, which in turn is calculated as the sum of:
a. the RWAG for Credit RiskG ExposuresG (CR ExposuresG ); and
b. the RWAG for securitisation ExposuresG (SE ExposuresG ).
4. This chapter sets out the manner in which each of those components must be calculated, monitored and controlled by an Authorised FirmG .
5. In addition to complying with the applicable RulesG in this chapter, an Authorised FirmG investing in or holding Islamic ContractsG whether or not for the purpose of a PSIAG will need to take account of the provisions under IFRG RulesG IFR 5.4.6 and IFR 5.4.7 to calculate the Credit RiskG for those Islamic ContractsG .
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]
[Amended] DFSA RM209/2017 (Made 25th October 2017). [VER30/01-18]