Regulatory Alerts2018-11-29
Regulation on the Internal Capital Adequacy Assessment Process for Banks
The Central Bank of the Republic of Kosovo mandates all licensed domestic banks to implement a comprehensive Internal Capital Adequacy Assessment Process (ICAAP) that ensures sufficient capital is allocated to cover operational risks and support strategic planning. Banks must continuously evaluate their risk appetite and capacity, integrate stress testing and sensitivity analysis into daily operations, and maintain robust governance frameworks that align risk strategies with business objectives. The regulation requires systematic risk identification, monitoring, and transparent reporting to the board and senior management, ensuring that capital adequacy assessments directly inform business decisions and regulatory compliance.
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