08-Internal Capital Adequacy Assessment Process (ICAAP) - METAC

INTRODUCTION
• A supervisory objective is that a bank should cope with severe
stress conditions
• The first answer is the regulatory capital but it is not sufficient.
• So the need to address, potential capital issues (concurrently with
liquidity issues) ;
• Thanks to ICAAP outcomes, Banks calculate and calibrate their
capital needs and resources in order to continue operations
throughout a period of severely adverse conditions.
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