PIB 3.9A2 Guidance

1. The CCyB Requirement applies to credit exposures of an Authorised Firm that are 'Non-Financial Private Sector Risk Exposures'. PIB Rule 1.2.1 defines that expression to exclude credit exposures to other banks or to sovereigns, government bodies or agencies, or multilateral development banks.
2. An Authorised Firm will need to follow the following steps to calculate its CCyB Requirement:
a. identify the jurisdictions in which it has Non-Financial Private Sector Credit Exposures (Rule 3.9A.6 sets out how to determine the location of an exposure);
b. identify if a CCyB Rate applies in that jurisdiction and, if so, the date on which it takes effect (see Rules 3.9A.7 to 3.9A.9);
c. determine the weighted average of CCyB Rates applying to it (see Rule 3.9A.5); and
d. multiply the weighted average by the value of its Risk Weighted Assets.
Derived from DFSA RM209/2017 (Made 25th October 2017). [VER30/01-18]