Regulatory AlertsCPG 110 Internal Capital Adequacy Assessment Process and Supervisory Review
The Australian Prudential Regulation Authority issued this prudential practice guide to assist regulated institutions in developing their Internal Capital Adequacy Assessment Process and understanding supervisory review requirements. The document mandates that Boards maintain primary responsibility for capital management, ensuring the ICAAP is integrated with risk appetite and covers all material risks through forward-looking strategies and stress testing. It further details specific requirements for documenting the process, setting capital targets, establishing trigger levels for corrective actions, and conducting independent reviews to ensure ongoing financial resilience.
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