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PIB 3.9A Guidance

1. This section sets out when an Authorised Firm must maintain a Countercyclical Capital Buffer (CCyB) and how the buffer is calculated.
2. A Countercyclical Capital Buffer is intended to take into account the macro-financial environment in which firms operate. If national authorities consider that excess credit growth has led to a build-up of system-wide risk, they can impose this measure to ensure the financial system has a buffer of capital to protect it against future potential losses.
3. An Authorised Firm will need to maintain a Countercyclical Capital Buffer only if it has a credit exposure in a jurisdiction where a CCyB Authority has imposed a CCyB Rate.
4. The Countercyclical Capital Buffer is in addition to the capital required under the Risk Capital Requirement and the Capital Conservation Buffer Requirement.
Derived from DFSA RM209/2017 (Made 25th October 2017). [VER30/01-18]
[Amended] DFSA RM209/2017 (Made 25th October 2017). [VER30/01-18]