Regulatory Alerts2013-05-09
ICAAP Internal Supervisory Guidelines
The Reserve Bank of Malawi establishes a risk-based Supervisory Review and Evaluation Process to systematically assess banks’ Internal Capital Adequacy Assessment Processes, stress testing results, and overall capital adequacy. Banks must submit annual ICAAP reports detailing their risk profiles, internal capital targets, and stress test outcomes, while engaging in structured dialogue with supervisory officers to align assumptions with regulatory requirements. Based on these assessments, the Registrar may impose higher capital adequacy ratios, restrict profit distributions, or mandate immediate capital raises to address identified risk exposures and systemic vulnerabilities.
Share