Regulatory Alerts2016-03-09
A circular dated March 9, 2016 regarding instructions for the internal assessment of capital adequacy
The letter is from the Central Bank of Egypt to the Chairman of the Board of Directors of a bank. It discusses the bank's internal capital adequacy assessment process (ICAAP) and the supervisory review and evaluation process (SREP). The ICAAP is a comprehensive assessment of the bank's capital adequacy, taking into account its risk profile, risk management system, and capital adequacy. The SREP is a review of the ICAAP by the Central Bank of Egypt to ensure compliance with international best practices in banking supervision. The letter outlines the ICAAP process, principles, scope, and frequency, as well as the roles of the bank and the supervisory authority in the SREP. It also covers the report preparation and approval process, the responsibilities of the board of directors and senior management, and the report components. The supervisory authority's role in the SREP is also detailed, including the assessment of the ICAAP, identification of deficiencies, and corrective actions.