This glossary contains terms and abbreviations in the field of regulatory reporting. It should help you to get a quick and general overview of the respective terms.
The International Association of Insurance Supervisors (IAIS), which is based in Basel, determines the international standards for insurance supervision. Part of its main tasks are the development of the cooperation of national supervisory authorities as well as seminars for members concerning topics from the field of regulatory reporting. German members are the Federal Ministry of Finance and the Federal Financial Supervisory Authority (BaFin).
The International Accounting Standards Board (IASB) is an international committee which develops the International Financial Reporting Standards (IFRS).
The Internal Capital Adequacy Assessment Process (ICAAP) is part of the Pillar II of Basel II. It refers to the process ensuring that banks dispose enough internal capital to cover all significant risks. See also Supervisory Review and Evaluation Process (SREP).
The International Financial Reporting Standards (IFRS) are published by the International Accounting Standards Board (IASB). According to Regulation No. 1606/2002 all capital market-oriented companies need to prepare their consolidated financial statements in accordance with the IFRS. Furthermore there is an option of discretion for the Member States of the European Union to allow individual or consolidated financial statements of non-capital market-oriented companies to have this as an option or requirement. The focus is on the informational function for the investor and the international comparability of the annual financial statements.
The International Financial Reporting Standard 9 (IFRS 9) is a reporting standard for the classification and valuation of financial assets and liabilities. As of January 1, 2018, the IFRS 9 will replace the IAS 39 completely excluding the regulation concerning portfolio fair value hedge against interest-change risk. In accordance with local exemptions the IFRS 9 can also be established before this date.
The Internal Liquidity Adequacy Assessment Process (ILAAP) denotes the process of identifying, measuring, managing and controlling the liquidity of an institution. The reporting has to be done regularly, but at least annually. Also see the Supervisory Review and Evaluation Process (SREP).
For the measurement of the risks in financial markets such as default risks, liquidity risks, market risks or operational risks, banks can use standardized approaches or value these risks with an Internal Models Approach (IMA).
The International Organization of Securities Commissions (IOSCO) was founded as an international exchange supervisory authority in 1983 and is based in Madrid. It has the leading role in establishing international uniform standards in the area of securities supervision.
The Losses from immovable properties (IP Losses) are a maximum loss rate from claims collateralized by mortgage. This is a bi-annual report.
The Internal-Ratings-Based Approach (IRBA) is part of Pillar I of Basel II. Assessment of the Credit Risk is based on internal and credit ratings. The ratings need to be approved by an independent authority. This approach is an alternative to the Credit Risk Standardized Approach (CRSA).
Interest rate risk in the banking book (IRRBB) is part of the Supervisory Review and Evaluation Process (SREP) and does not have to be backed by equity capital for this reason. On June 8, 2015 the Basel Committee on Banking Supervision (BCBS) published a consultation paper concerning this, which was open until September 2015.