21.Fundamental elements of sound capital assessment include:

1. i.Policies, procedures and methodologies designed to ensure that the bank identifies, measures, and reports all material risks;
2. ii.A process that relates capital to the level of risk;
3. iii.A process that states capital adequacy requirements (i.e. minimum thresholds for CAR ratio) with respect to risk, taking account of the bank’s strategic focus and business plan; and
4. iv.A process of internal controls, reviews and audits to ensure the integrity of the overall management process.