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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Recognised Jurisdictions and Funds
Declaration Notices
Financial Markets Tribunal
Rulebook Modules
Prudential — Investment, Insurance Intermediation and Banking Module (PIB) [VER34/12-19]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases

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  • PIB 4.1 Application

    • PIB 4.1.1

      This chapter applies to an Authorised FirmG in CategoryG 1, 2, 3A or 5.

      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

      • PIB 4.1.1 Guidance

        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]