Regulatory Alerts2013-05-09
ICAAP Guidelines
The Reserve Bank of Malawi mandates all licensed banking institutions to establish and maintain a risk-based Internal Capital Adequacy Assessment Process (ICAAP) that aligns capital targets with their specific risk profiles and strategic objectives. Banks must ensure active board and senior management oversight, conduct comprehensive quantitative and qualitative risk assessments including periodic stress testing, and formally document their capital planning to support ongoing regulatory compliance. The finalized ICAAP documents must be reviewed at least annually and submitted to the Registrar within 120 days of each financial year end, directly informing supervisory reviews and minimum capital adequacy ratio determinations.
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