Slovene experience and practical guidelines for banking supervisors on SREP, ICAAP & ILAAP

Implementation in the national regulation - ICAAP
✓ Bank of Slovenia – REGULATION on Internal Governance Arrangements, the Management
body and the Internal Capital Adequacy Assessment Process for Banks and Savings banks (link)
✓ Early implementation of SSM requirement into national regulation
✓ This national regulation puts more clarity on the supervisory expectations
✓ Withdrawal of BoS ICAAP guidelines that prescribed a fall-back approach
✓ Dedicated chapter on ICAAP that covers the following aspect:
✓ ICAAP as integral part of risk management processes (the bank shall apply the same
systems, processes, methodologies, data and definitions of risks as those applied in the
identification, assessment or measurement, management, monitoring and controlling of
risks; Management body’s responsibility for approval of ICAAP, MB detailed knowledge
and SB general awareness of the concept and objectives of the ICAAP, including an
understanding of the importance of its results and the corresponding measures, planning
and implementation of ICAAP)
✓ Application of results of ICAAP to setting of risk strategies and capital planning
(inclusion of identified risks in ICAAP, risk measurement and use of economic capital
models, internal assessment of risk-based capital requirement)
✓ Internal capital assessment (objectives for maintenance of risk bearing capacity, capital
planning, analysis of risk bearing capacity, use of stress tests, capital allocation process)
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