91. In assessing the institution’s ICAAP and ILAAP frameworks, competent authorities should assess …

In assessing the institution’s ICAAP and ILAAP frameworks, competent authorities should assess institution’s compliance with the EBA Guidelines on ICAAP and ILAAP information³¹ . The assessment of the institution’s ICAAP and ILAAP frameworks should encompass periodic review of the ICAAP and ILAAP and determine their soundness, effectiveness and comprehensiveness. In this regard, competent authorities should:

• a. assess how ICAAP and ILAAP are integrated into the institution’s overall risk management and strategic management practices, including capital and liquidity planning, as well as the extent of their forward-looking nature;
• b. consider the appropriateness of the ICAAP and ILAAP to assess and maintain an adequate level of internal capital and liquidity to cover the institution’s risks and to take sound business decisions (e.g. in relation to allocating capital under the business plan), including under stressed conditions;
• c. assess whether the ICAAP and ILAAP are embedded into the decision-making and management processes at all levels in the institution (e.g. limit setting, performance measurement);
• d. verify whether the ICAAP and ILAAP frameworks are subject to regular oversight by the management body, including the approval of these frameworks and their outcomes;
• e. assess whether the ICAAP and ILAAP are consistently and proportionately implemented in all the institution’s business lines and legal entities and cover all material risks to which the institution is or might be exposed to;
• f. assess compliance with related legal and regulatory requirements and also consider whether institution’s ICAAP identifies emerging risks and/or low -probability, high-impact risks, including ICT risks, environmental risks and geopolitical uncertainties;
• g. assess whether any deviations from the institution’s standard ICAAP or ILAAP for one or more of its legal entities or business lines are justified.

³¹ EBA Guidelines on ICAAP and ILAAP information collected for SREP purposes (EBA/GL/2016/10).

1. Yleiskatsaus

1.1 Viittaukset

1.2 Tunnistetut vaatimukset

1.3 Liittyvät standardit

2. Tunnistetut vaatimukset

3. Liittyvät standardit

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/