ECB launched a public consultation on the draft principles underlying its expectations for internal capital adequacy assessment processes (ICAAPs) and internal liquidity adequacy assessment processes (ILAAPs) of banks. The consultation runs until May 04, 2018. As part of the consultation, ECB issued two draft guides on ICAAP and ILAAP, along with a list of frequently asked questions.
ECB plans to publish the comments received, along with a feedback statement. Once adopted, the guides will not replace or supersede any applicable law implementing Articles 73 and 86 of the CRD IV. The guides derive seven principles from the CRD IV ICAAP and ILAAP provisions that will be considered, inter alia, in the assessment of ICAAPs/ILAAPs of institutions as part of the Supervisory Review and Evaluation Process, or SREP, from 2019. Institutions are encouraged to address any gaps or weaknesses in their ICAAPs and ILAAPs, in close dialog with their Joint Supervisory Team at ECB, which will start using the guides from 2019, when assessing ICAAPs and ILAAPs.
Comment Due Date: May 04, 2018
Keywords: Europe, EU, Banking, ICAAP, ILAAP, Capital Adequacy, Liquidity Risk, ECB
Previous ArticleESMA Publishes Technical Advice Under the Prospectus Regulation
Next ArticleEBA Single Rulebook Q&A: First Update for March 2018
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.
MAS published the guidelines on individual accountability and conduct at financial institutions.
APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.
SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.
FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.
ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.
OSFI published the key findings of a study on third-party risk management.
FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.