Entire Section

  • PIB 3.8 PIB 3.8 Risk Capital Requirement

    • PIB 3.8.1 PIB 3.8.1

      This section applies to an Authorised Firm in Category 1, 2, 3A or 5.

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

      • PIB 3.8.1 Guidance

        The Risk Capital Requirement is a component of the calculation of the Capital Requirement under sections PIB 3.3 and PIB 3.4.

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

    • Calculation of Risk Capital Requirement

      • PIB 3.8.1A

        An Authorised Firm must calculate its Risk Capital Requirement as 10% of its Risk Weighted Assets.

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

    • Risk Weighted Assets

      • PIB 3.8.2

        An Authorised Firm must calculate its Risk Weighted Assets as 12.5 multiplied by the sum of the following:

        (a) the CRCOM;
        (b) the Market Risk Capital Requirement;
        (c) the Operational Risk Capital Requirement; and
        (d) the Displaced Commercial Risk Capital Requirement, where applicable.
        Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]
        [Amended] DFSA RM209/2017 (Made 25th October 2017). [VER30/01-18]

    • CRCOM

      • PIB 3.8.3 PIB 3.8.3

        An Authorised Firm must calculate its Credit Risk Capital Requirement in accordance with the applicable Rules in PIB chapter 4.

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

        • PIB 3.8.3 Guidance

          1. Detailed Rules and Guidance in respect of the CRCOM are specified in PIB chapter 4. The CRCOM includes the risk weighted assets (RWA) for all Credit Risk Exposures and securitisation Exposures.
          2. Rules and Guidance in respect of calculating the CRCOM for Islamic Contracts are contained in IFR chapter 5.
          Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

    • Market Risk Capital Requirement

      • PIB 3.8.4 PIB 3.8.4

        An Authorised Firm must calculate its Market Risk Capital Requirement in accordance with the applicable Rules in PIB chapter 5.

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

        • PIB 3.8.4 Guidance

          1. Detailed Rules and Guidance in respect of the Market Risk Capital Requirement and each of its components are contained in PIB chapter 5.
          2. Rules and Guidance in respect of calculating Market Risk for Islamic Contracts are contained in IFR chapter 5.
          Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]

    • Operational Risk Capital Requirement

      • PIB 3.8.5

        An Authorised Firm must calculate its Operational Risk Capital Requirement in accordance with the applicable Rules in PIB chapter 6.

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

    • Displaced Commercial Risk Capital Requirement

      • PIB 3.8.6

        An Authorised Firm Managing a PSIAu must calculate its Displaced Commercial Risk Capital Requirement in accordance with IFR chapter 5.

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