2016-11-17 | 185299320

Banking Circular No 7 of 2016 (ICAAP)

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 comprehensive, covering various risks, and proportional to the bank's size and complexity, with board and senior management oversight, sound capital planning, risk assessment, stress testing, monitoring, and internal control review. The ICAAP report enables the Central Bank to assess capital planning, risk exposure, and total internal capital.

Kenya

Central Bank of Kenya

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