ICAAP & ILAAP role in SREP

SSM regulation – ICAAP and ILAAP guide
✓ The ECB published its expectations on the ICAAP and the ILAAP in its ECB Guides
to ICAAP and ILAAP which are aimed at assisting institutions in strengthening their ICAAPs
and ILAAPs and at encouraging the use of best practices by explaining in greater detail the
ECB’s expectations of the ICAAP and the ILAAP, leading to more consistent and effective
supervision.
✓ The ICAAP and ILAAP are expected to play an even greater role in the SREP in the future,
which should encourage banks to continuously improve these processes. Among other things,
both the qualitative and quantitative aspects of the ICAAP – the latter focusing on identifying and
quantifying risks – could play an enhanced role in the calculation of additional capital
requirements on a risk-by-risk basis.
On a good track towards consistency and harmonization.
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