The Dubai Financial Services Authority (Dubai FSA) updated certain Rulebook modules for financial sector entities, including banks, following the legislative amendment proposals set out in the consultation paper no. 142. The updates cover General, Glossary, Collective Investment Rules, and Prudential– Investment, Insurance Intermediation and Banking Business (PIB) modules. The recently published rulemaking instruments (or notices) for financial firms, including banks, insurers, and asset managers came into force on June 01, 2022.
Key among the amended modules is the Prudential—Investment, Insurance Intermediation and Banking Business Module (PIB), in which the changes relate to the section on Calculating the Capital Requirement, including the table that sets out the base capital requirement for each category of an authorized firm and the table on the authorized firm reporting matrix. The reporting matrix table has been modified with information on the forms for Large Exposure (B310), Arrears and Provisions (B320), Credit Activity (B340), and Trade Finance Activity (B350). The reporting matrix table indicates whether a relevant form must be prepared and submitted by a domestic firm or branch, which category of authorized firm must prepare and submit the relevant form, whether the relevant form must be prepared and submitted on a quarterly or annual basis, and which category of authorized firm of a financial group must prepare and submit the relevant form on a semi-annual basis. Overall, the PIB module covers capital, leverage ratio, credit risk, market risk, operational risk, liquidity risk, interest rate risk in the banking book, supervisory review and evaluation process, and disclosure requirements, among others, for various categories of authorized firms, including global and domestic systemically important banks (G-SIBs and D-SIBs). Other amended modules involve minor changes that are detailed in the respective associated appendix documents.
Keywords: Middle East and Africa, United Arab Emirates, Dubai, Banking, Rulebook, Basel, Large Exposure, Reporting, Regulatory Capital, Dubai FSA
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