PRU 2.2.5 Guidance for Form PIB 1 — Appendix 4 — Calculation of the DCR

Instructional Guidelines

DCR is defined in PIB Section 3.4 and is calculated only in respect of the PSIA funded assets. Whilst the end calculation is relatively straightforward, DFSA acknowledges that the details required to derive the final figure will be extensive depending on the size of the PSIA funded asset base.

For Authorised Firms providing services through Islamic Windows, DFSA has not asked Authorised Firms to identify in detail the credit and market risks arising from positions in both the trading and non trading book and on and off balance sheet. Instead, Authorised Firms are required to report the numbers in summary form and are reminded that they must make the information available for review as and when required.

Item No. Item Guidance
CPCOM and CRCOM are calculated in accordance with Sections PIB 4.3 and PIB 4.4. The risk weightings of the assets in Islamic contracts are derived from PIB Section 3.5 and for all other assets via the appropriate Rules primarily in PIB Chapter 4 and PIB Appendix 4. Refer to previous guidance on Form PIB 1, Appendices 1 and 2 which will be relevant here.
1.A.4.1.3 Total
Total PSIACOM Credit is the sum of CPCOM and CRCOM for PSIA assets.
PSIACOM Market is the sum of the capital charge for the various kinds of market risks arising in the trading book for PSIA assets. Market risks are calculated primarily with reference to PIB Chapter 5 and PIB Appendix 5.
1.A.4.3 DCR
The number derived for the DCR charge should be carried over to Form PIB 6, Item Nos. 6.28.