Regulatory Alerts2020-08-14
Banking Circular No. 11 of 2020 - Internal Capital Adequacy Assessment Process (ICAAP)
Haile Selassie Av, P.O. Box 60000, Nairobi has issued a banking circular to all Chief Executives of commercial banks and mortgage finance companies regarding Internal Capital Adequacy Assessment Process (ICAAP) during the COVID-19 pandemic. Due to the critical role the banking sector has played in supporting the Kenyan economy amidst the coronavirus crisis, the Central Bank of Kenya (CBK) requires all commercial banks and mortgage finance companies: 1. To re-submit by October 31, 2020, their board-approved ICAAP documents for 2020, taking into account the pandemic's impact and measures taken to strengthen the balance sheet, maintain adequate capital and liquidity. 2. To discuss the re-submitted ICAAP documents with CBK before making any decisions on distribution of 2020 profits. For further inquiries, please contact the Director of Bank Supervision at the Central Bank of Kenya.