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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Rulebook Modules
Prudential — Investment, Insurance Intermediation and Banking Module (PIB) [VER33/02-19]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Financial Markets Tribunal

Whole SectionText only Print Print Manager Link

(1 version)
Dec 9 2012 onwards

PIB 7.4.3 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. The Governing BodyG of the Authorised FirmG may delegate responsibility for establishing Non-Trading BookG interest rate risk policies and strategies to the Asset and Liability Committee (ALCO) or an equivalent committee, which is the designated senior management committee for managing balance sheet structure and interest rate risk associated with it.
2. An Authorised FirmG involved in banking activities or complex principal dealing activities should have a designated committee for design and implementation of Non-Trading BookG interest rate risk management.
3. An Authorised FirmG should establish and enforce operating limits and other practices that maintain ExposuresG within levels consistent with their internal policies and that accord with their approach to measuring the risk. In particular, Authorised FirmsG should set a limit on the extent to which floating rate ExposuresG are funded by fixed rate sources and vice versa to limit the risk. In floating rate lending, Authorised FirmsG should limit the extent to which they run any basis risk that may arise if lending and funding are not based on precisely the same market interest rate (e.g. LIBOR).
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]