Skip to main content
Entire section Custom print Text Only Rich Text Print

Internal Capital Adequacy Assessment Process (ICAAP)

C 153-2018 STA Effective from 27/6/2018
  1. 17. A bank must have a formal documented process for assessing its overall capital adequacy in relation to its risk profile and a strategy for maintaining its capital levels above regulatory minimum requirements. The assessment must be documented and submitted annually to the Central Bank for review (ICAAP Report).
  2. 18. A bank must demonstrate the following in its documented ICAAP:
    1. a. Board and senior management oversight;
    2. b. Elements of a sound capital assessment process. This includes policies and procedures designed to ensure that the bank identifies, measures and reports all material risks, policies and procedures relating to capital and capital adequacy goals to the level of risk and policies and procedures for internal control to ensure the integrity of the overall management process;
    3. c. Comprehensive assessment of risks; notably credit, market, operational, interest rate, concentration, liquidity and other;
    4. d. Monitoring and reporting of risk exposure and related capital needs; and
    5. e. Internal control review, including the role of internal and external audit where appropriate.