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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]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
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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.

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

(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]