Entire Section

  • 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

      where:

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

      "HLA Ratio" is the ratio determined by the DFSA for that Authorised Firm 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 Firm 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 Rule 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 Firm 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 DFSA 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 Firms forming part of a Group.

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