2016-11-17 | 147315124

GUIDANCE NOTE ON INTERNAL CAPITAL ADEQUACY ASSESSMENT PROCESS

The guidance note outlines the Central Bank of Kenya's expectations for banks' Internal Capital Adequacy Assessment Process (ICAAP) to ensure adequate capital for mitigating risks. Banks must develop an ICAAP document, reviewed by the Central Bank, that identifies, measures, aggregates, and monitors risks, with capital plans and stress tests over a minimum three-year period. The ICAAP should be proportional to the bank's size and complexity, with comprehensive risk identification and assessment, stress testing, monitoring, and internal controls. The report enables the Central Bank to assess capital planning, risk exposure, and total internal capital.

Kenya

Central Bank of Kenya

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