Entire Section
Commercial Real Estate Asset Class
PIB 4.12.18
An
Authorised Firm must apply a 100% risk weight to anyCR Exposure in the commercial real estate asset class.Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]PIB 4.12.19
An
Authorised Firm must apply a risk weight of 150% toExposures , includingExposures in the form ofShares orUnits in aCollective Investment Fund , that are associated with particularly high risks.Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]PIB 4.12.20
For the purposes of PIB Rule 4.12.19,
Exposures with particularly high risks must include the following investments:(a) investments in venture capital funds(b) investments in hedge funds or alternative investment funds, including but not limited to private equity funds;(c) speculative immovable property financing; and(d) any investments declared by theDFSA to constitute high risk for the purpose of thisRule .Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]PIB 4.12.21
When assessing whether an
Exposure other thanExposures referred to in PIB Rule 4.12.20 is associated with particularly high risks, anAuthorised Firm must take into account the following risk characteristics:(a) there is a high risk of loss as a result of a default of the obligor; and(b) it is impossible to assess adequately whether theExposure falls under (a).Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]