PIB 1.2.1
The following terms and abbreviations bear the following meanings for the purpose of this module:
The manner in which the |
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The expenditure calculated in accordance with PIB Rule 3.7.3 or, if applicable, PIB Rule 3.7.3A. | |
Asset-Backed |
A programme that predominately issues commercial paper with an |
AT1 | Additional tier 1 |
AT1 Capital | Has the meaning given in PIB section 3.14. |
Available Stable Funding (ASF) | The amount, calculated in accordance with PIB Rule A9.4.1, representing the relative stability of an |
ASF Category | The applicable category, listed in the table to PIB Rule A9.4.1, to which the carrying value of a liability or capital instrument of an |
ASF Factor | The applicable factor, listed in the table to PIB Rule A9.4.1, used to multiply the carrying value of a liability or capital instrument of an |
Has the meaning given in PIB section 3.6. | |
Basel Committee | The |
The manner in which the |
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Capital Buffer | In relation to an (a)
(b)
(c)
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Capital Buffer Requirement | Means a requirement to maintain any one or more of the following:
(a)
(b)
(c)
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Capital Conservation Buffer | The |
Capital Conservation Buffer Requirement | The requirement to maintain a Capital Conservation Buffer under PIB section 3.9. |
The amount of capital an |
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The total |
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A prudential grouping of |
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CCF | Credit conversion factor |
CCP | Central |
CET1 | Common equity tier 1 |
CET1 Capital | Has the meaning given in PIB section 3.13. |
An option that permits the SE |
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A (a)
(i) is a
(ii) is a
(iii) is a
(iv) is a
(v) owns and controls 20% or more of the voting rights or shares of
(b)
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Has the meaning given in PIB Rule A4.11.5. | |
Any form of asset, guarantee, or indemnity which is held or controlled by an |
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A component of |
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A component of the |
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The risk faced by an |
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In relation to a (a) a member of A's
(b) a
(c) a member of a partnership of which A is a member;
(d) an employee or former employee of A;
(e) if A is a company:
(i) an officer or manager of A or of a parent of A;
(ii) an agent of A or of a parent of A;
(f) if A is a partnership is or has been a member, manager or agent of A; or
(g) if A is an unincorporated association of persons which is not a partnership, is or has been an officer, manager or agent of A.
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Has the meaning given in PIB Rule A4.11.7. | |
Contingency Funding Plan (CFP) | The plan referred to in PIB Rule 9.2A.6. |
Countercyclical Capital Buffer (CCyB) | The countercyclical capital buffer that an |
CCyB Authority |
(1) For the
(2) For any other jurisdiction, means the authority in that jurisdiction responsible for setting CCyB Rates.
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CCyB Rate | A rate expressed as a percentage of |
CCyB Requirement | The requirement to maintain a |
Means any person with or for whom an |
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The risk that an |
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The |
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Any contract which transfers the |
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A contractual arrangement in which the |
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A credit quality step in a credit quality assessment scale. A credit quality assessment scale is a scale onto the credit assessments of an |
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In relation to an |
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The requirement calculated in accordance with PIB section 4.6. | |
An on-balance sheet asset that:
(i) represents a valuation of cash flows related to future margin income; and
(ii) is subordinated.
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CRW | Credit risk weight for an |
CV | Contracted value for delivery. |
The measure of an |
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The requirement calculated in accordance with IFR chapter 5. | |
Domestic Systemically Important Bank (D-SIB) | An |
A measure of |
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E | An |
E* | An |
EAE | The |
A mechanism that, once triggered, allows investors to be paid out prior to the originally stated maturity of the securities issued. For risk-based capital purposes, an |
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A CRA or an external credit rating agency approved by the |
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A component of |
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Evergreening | Evergreening refers to the practice by some banks to roll over or renew their non-performing loans or potentially nonperforming loans, so that they can avoid recognising them as non-performing loans in their accounts and consequently avoid provisioning for them. |
Gross finance charge collections and other income received by the trust or SPE minus certificate interest, servicing fees, charge-offs, and other senior trust or SPE expenses. | |
A |
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The maximum loss that an (a) a
(b) it realises assets or off-balance sheet positions.
An |
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FCCA | Financial |
FCSA | Financial |
A group of entities which includes an (a) any
(b) any
(c) any
(d) any entity which the
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The |
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The |
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Represents the first level of support provided to the special purpose entity or vehicle that should bear all, or a significant part of, the risk associated with the items held by the special purpose entity or vehicle. | |
A component of the |
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The measure of the rate of change of |
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(1) For the purposes of the
(2) For the purposes of the
(3) For the purposes of internal models, means both of the above risks.
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Global Systemically Important Bank (G-SIB) | An |
Means a group of entities which includes an entity (the 'first entity') and:
(a) any
(b) any subsidiaries (direct or indirect) of the
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The risk of loss to the |
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High Quality Liquid Assets (HQLA) | Liquid assets that meet the conditions in PIB Rules A9.2.2 to A9.2.9 of App 9. |
HLA Capital Buffer | A higher loss absorbency capital buffer that a SIB must maintain under PIB section 3.9B. |
HLA Capital Buffer Requirement | The requirement to maintain a higher loss absorbency capital buffer under PIB section 3.9B. |
HLA Ratio | In relation to a SIB, means the ratio determined by the |
ICR (Individual Capital Requirement) | Individual capital requirement |
Implicit Support | Arises when an |
Individual Liquidity Requirement | An individual liquidity requirement imposed by the |
A component of |
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The internal capital adequacy assessment process prescribed in PIB chapter 10. | |
The internal risk assessment process prescribed in PIB section 10.3. | |
A credit rating which is a |
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Has the meaning given in PIB Rule 4.15.4. | |
LCR Requirement | The LCR required to be maintained by an |
Leverage Ratio | The amount expressed as a percentage that is calculated in accordance with the Rules in PIB section 3.18. |
Leverage Ratio Exposure Measure | The value of an |
Liquidity Coverage Ratio (LCR) | The amount expressed as a percentage that is calculated in accordance with PIB Rule 9.3.5 and PIB section A9.2 of App 9. |
The risk of loss to an |
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The risk of loss that arises from fluctuations in the values of, or income from, assets or in interest or exchange rates. | |
The requirement calculated in accordance with PIB Rule 5.3.1. | |
Has the meaning described in PIB Rule 1.3.3(2). | |
A table that ordinally ranks the maturity time bands and assets and liabilities within them. | |
This is an advanced approach that an |
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MDB | |
The time period calculation for the purposes of the |
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MV | Market value |
Net Stable Funding Ratio (NSFR) | The amount, expressed as a percentage, calculated in accordance with PIB Rule 9.3.12, or, if applicable, PIB Rule 9.3.6. |
A process by which the claims and obligations between two |
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Non-Financial Private Sector Credit Exposure | A Credit Risk Exposure to a party other than:
(a) a sovereign;
(b) a regional, provincial or municipal government;
(c) a public sector entity;
(d) a multilateral development bank; or
(e) a bank.
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Describes positions, |
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NP | Nominal principal amount. |
NSFR Requirement | The requirement for an |
OSB< | Off-balance sheet. |
OBS Exposure | An |
OBS-RSF Category | A category, listed in Table 2 to PIB Rule A9.4.2, to which carrying value of an |
OBS-RSF Factor | The factor, listed in Table 2 to PIB Rule A9.4.2, used to multiply the carrying value of an |
The risk of loss resulting from inadequate or failed internal processes, people and systems or from external events, including legal risk. | |
The requirement calculated in accordance with PIB section 6.11. | |
A component of the |
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(1) The time period between the date an offer is made and the date it expires or lapses.
(2) In relation to
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(a) an entity which, either itself or through related entities, directly or indirectly, creates the
(b) any entity which purchases or advises or causes an SPE to purchase the
Where an entity lends to an SPE with a view to enabling that SPE to make loans which are then used in a securitisation, the entity will generally be deemed to be acting as an |
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OTC | Over the counter |
An amount calculated by multiplying the nominal principal amount of an OTC derivative contract by a specified percentage dependent on the nature and residual maturity of the contract. | |
PSE | |
Qualifying CCP | Means a CCP:
(a) that is operated by an Authorised Person in accordance with its Licence; or
(b) in respect of which all of the following conditions are met:
(i) the CCP is authorised and supervised by a Financial Services Regulator in a jurisdiction other than the DIFC;
(ii) the Financial Services Regulator has publicly stated that it applies on an ongoing basis rules and regulations that are consistent with the CPSS-IOSCO Principles for Financial Market Infrastructures; and
(iii) the CCP satisfies the Basel Committee requirements for calculating its capital requirements for its default fund exposures.
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Any holding in the capital of a non-financial |
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Has the meaning given in PIB Rule 4.4.6. | |
Means any of the following:
(a) another
(b) a
(c) any unregulated
(d) any financial holding company.
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The amount, calculated in accordance with PIB Rule A9.4.2, representing the stable funding required by an |
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A category, listed in Table 1 to PIB Rule A9.4.2, to which the carrying value of an Authorised Firm's asset is assigned. | |
The applicable factor, listed in Table 1 to PIB Rule A9.4.2, used to multiply the carrying value of an asset of an |
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Has the meaning given in PIB section 4.14. | |
A |
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A Traditional or |
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The measure of an |
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Has the meaning given in PIB Rule 3.8.1A. | |
The risk weighted assets of an |
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SE |
The |
A component of the |
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A |
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SFT | |
An alternative application of the provisions of PIB chapter 4 for an |
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Special Purpose Entity (SPE) | A corporation, trust, or other entity organised for a specific purpose, the activities of which are limited to those appropriate to accomplish the purpose of the SPE, and the structure of which is intended to isolate the SPE from the |
The risk that losses on an |
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An |
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The manner in which the |
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Stored Value Capital Requirement | Has the meaning given in PIB section 3.8A. |
The supervisory review and evaluation process prescribed in PIB chapter 10. | |
Has the meaning given in PIB Rule 4.14.2(b). | |
Systemically Important Bank (SIB) | An (a) a D-SIB; or
(b) a G-SIB.
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T | Trade date, which is the date on which a transaction is entered into. |
T1 | Tier 1 |
T1 Capital | Has the meaning given in PIB Rule 3.12.1. |
T2 | Tier 2 |
T2 Capital | Has the meaning given in PIB Rule 3.15.1. |
The ratio of the change in an |
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Total Net Cash Outflow | Has the meaning given in PIB Rule A9.2.13 |
A contract under which two parties exchange their positive or negative returns on a notional amount of a reference asset for a specified period of time. | |
The positions and |
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Traditional |
Has the meaning given in PIB Rule 4.14.2(a). |
Transaction Based Capital Requirement | Has the meaning given in PIB section 3.8B. |
A |
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A transaction where delivery of an instrument is due to take place against the receipt of cash but remains outstanding. | |
The measure of the sensitivity of the value of the |
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A provision which permits a non-defaulting party to make payments, or no payments at all, to the estate of the defaulter, even if the defaulter is a net creditor. |
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]
[Amended] DFSA RM148/2014 (Made 1st January 2015). [VER23/01-15]
[Amended] DFSA RM209/2017 (Made 25th October 2017). [VER30/01-18]
[Amended] DFSA RMI250/2019 (Made 18th December 2019). [VER34/12-19]
[Added] DFSA RMI270/2020 (Made 26th February 2020). [VER36/04-20]
[Amended] DFSA RMI293/2021 (Made 24th February 2021). [VER38/04-21]
[Amended] DFSA RM148/2014 (Made 1st January 2015). [VER23/01-15]
[Amended] DFSA RM209/2017 (Made 25th October 2017). [VER30/01-18]
[Amended] DFSA RMI250/2019 (Made 18th December 2019). [VER34/12-19]
[Added] DFSA RMI270/2020 (Made 26th February 2020). [VER36/04-20]
[Amended] DFSA RMI293/2021 (Made 24th February 2021). [VER38/04-21]