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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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  • HLA Capital Buffer Requirement

    • PIB 3.9B.2

      A SIB must maintain an HLA Capital Buffer of CET1 Capital that is calculated using the following formula:

      HLA Capital Buffer = HLA Ratio x Relevant RWA


      "HLA Capital Buffer" is the HLA Capital Buffer that the Authorised Firm must maintain;

      "HLA Ratio" is the ratio determined by the DFSAG for that Authorised FirmG under PIB Rule 3.9B.6; and

      "Relevant RWA":

      (a) for a G-SIB, is the value of the its Risk Weighted Assets; or
      (b) for a D-SIB, is the value of its Risk Weighted Assets in jurisdictions for which it is considered to be systemically important.
      Derived from DFSA RM209/2017 (Made 25th October 2017). [VER30/01-18]

    • PIB 3.9B.3

      If an Authorised FirmG is both a G-SIB and a D-SIB, the HLA Capital Buffer that applies under this section is the higher of the amount calculated under PIB Rule 3.9B.2 for the firm as a G-SIB and the amount calculated under that RuleG for the firm as a D-SIB.

      Derived from DFSA RM209/2017 (Made 25th October 2017). [VER30/01-18]

    • PIB 3.9B.4

      An Authorised FirmG must not apply CET1 Capital that it maintains to meet an HLA Capital Buffer Requirement towards meeting:

      (a) its Risk Capital Requirement;
      (b) its Capital Conservation Buffer Requirement;
      (c) its Countercyclical Capital Buffer Requirement; or
      (d) an Individual Capital Requirement that the DFSAG has imposed on it under PIB chapter 10.

    • PIB 3.9B.5

      The HLA Capital Buffer Requirement applies on both a solo and a consolidated basis for Authorised FirmsG forming part of a GroupG .

      Derived from DFSA RM209/2017 (Made 25th October 2017). [VER30/01-18]