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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

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PIB 9.2.5

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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.

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(1) An Authorised FirmG must ensure that the method referred to in PIB Rule 9.2.1(3)(b) for measuring Liquidity RiskG is capable of:
(a) measuring the extent of the Liquidity RiskG it is incurring
(b) tracking early warning indicators to aid the Liquidity RiskG management processes;
(c) dealing with the dynamic aspects of the Authorised Firm'sG liquidity profile;
(d) where appropriate, measuring the Authorised Firm'sG ExposureG to Foreign CurrencyG Liquidity RiskG ; and
(e) where appropriate, measuring the Authorised Firm'sG ExposureG to PSIAG and Islamic ContractG Liquidity RiskG .
(2) An Authorised FirmG must establish and maintain a system of management reporting which provides relevant, accurate, comprehensive, timely, forward looking and reliable Liquidity RiskG reports to relevant functions within the Authorised FirmG .
(3) The method for measuring Liquidity RiskG under (1)(a) must enable the Authorised FirmG to forecast prospective cash flows for assets, liabilities, off-balance sheet commitments and contingent liabilities over a variety of time horizons, under both normal conditions and a range of stress scenarios, including scenarios of severe stress.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]
[Amended] DFSA RM148/2014 (Made 1st January 2015). [VER23/01-15]
[Amended] DFSA RM209/2017 (Made 25th October 2017). [VER30/01-18]