Regulatory Alerts2020-11-16 | 36799Circular Letter – Internal Capital Adequacy Assessment Process (ICAAP) Guideline
The financial regulator issued this circular letter to mandate the Internal Capital Adequacy Assessment Process (ICAAP) guideline for Basel II/III implementation. Institutions must develop a robust ICAAP framework that aligns capital targets with their risk profile, strategic objectives, and stress testing results. The guideline further requires enhanced governance oversight, forward-looking capital planning, and periodic reporting to maintain adequate capital buffers.
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