Migration from DB2 to PostgreSQL

While migrating my application from DB2 to PostgreSQL.

I want to migrate following functions in PostgreSQL.

TO_CHAR() in DB2 which can take three arguments as follows:

SELECT TO_CHAR(CURRENT_DATE,'YYYY-MM-DD',112.50) FROM SYSIBM.SYSDUMMY1

I am not sure what is the purpose of third argument in TO_CHAR() function of
DB2.

I think we can create one user define function with name TO_CHAR which can
take three argument like DB2.

I want to know that if we want to create user define function TO_CHAR().
What should be the data type of third argument?

which can handle maximum data types and more suitable for real time
scenarios.

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