ECB revises ICAAP & ILAAP guides

11/09/18 The ECB revised its guides regarding institutions’ internal capital and liquidity adequacy assessment processes (ICAAPs and ILAAPs).

The guides, though not legally binding, will be applied from 1 January 2019 and replace those published in January 2016. They aim to assist banks in strengthening their ICAAPs and ILAAPs and to encourage the adoption of best practices. ECB Banking Supervision plans to increase the importance that the reviews of the quality of institutions’ ICAAPs and ILAAPs play in the supervisory review and evaluation process (SREP). For example, the ICAAP will play an enhanced role in the determination of Pillar-2 own funds requirements on a risk-by-risk basis, following an individual assessment of each bank.

ECB Guide to ILAAP

ECB Guide to ICAAP

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