Case of NBR

III. Legal basis for ICAAP, ILAAP and SREP (2)
• Regulation no.5/2013 requires banks to have an appropriate internal
process for assessing their overall capital and liquidity adequacy in
relation to their risk appetite and risk profile
• ICAAP: Regulation no.5/2013 (article 68) stipulates that ICAAP represent a
component of the management process of the credit institution and of its
organizational culture and that this gives the management body the
possibility to assess, on an ongoing basis, the risk profile of a credit
institution and the adequacy of its internal capital in relation to it;
• ILAAP: Regulation no.5/2013 (article 137) requires banks (i) to have adequate
levels of liquidity buffers, (ii) to have strategies, policies, processes and
systems proportionate to the complexity, risk profile, scope of operation of the
bank and risk tolerance set by the management body, (iii) to communicate risk
tolerance to all relevant business lines.
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