Regulatory Alerts2019-06-27
ICAAP Guidelines
The Central Bank of The Bahamas requires all licensed banks and trust companies to develop, implement, and maintain a comprehensive Internal Capital Adequacy Assessment Process (ICAAP) tailored to their specific risk profiles and business plans. Licensees must ensure board and senior management oversight, conduct comprehensive stress testing, and allocate sufficient economic capital to cover all material risks including credit, market, liquidity, and operational exposures. The guidelines mandate that the ICAAP be integrated into strategic planning, supported by robust monitoring systems and internal controls, while remaining flexible enough to match the institution's complexity without requiring specific regulatory approval.
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