EBA consults on draft Guidelines on ICAAP and ILAAP information collected for SREP purposes

The European Banking Authority (EBA) launched today a public consultation on draft Guidelines on the collection of information related to the internal capital adequacy assessment process (ICAAP) and the internal liquidity adequacy assessment process (ILAAP). These draft Guidelines aim at facilitating the consistent approach to the supervisory assessment of ICAAP and ILAAP frameworks as well as the assessment of reliability of institutions’ own capital and liquidity estimates as part of the supervisory review and evaluation process (SREP)  following the criteria and methodologies specified in the EBA Guidelines on common procedures and methodologies for SREP. The public consultation runs until 11 March 2016.

In particular, these draft Guidelines specify (1) general information about ICAAP and ILAAP frameworks, business model and strategy, as well as governance arrangements, (2) ICAAP-specific methodological, policy  and operational information; (3) ILAAP-specific methodological, policy and operational information, and (4) management conclusions on ICAAP and ILAAP and quality assurance information.

In addition, these draft Guidelines set the criteria for competent authorities to organise the collection of ICAAP and ILAAP information from institutions taking into account the principle of proportionality in relation to the frequency, reference and remittance dates, scope and level of detail of the information collected.

These Guidelines will be finalised following the completion of the public consultation in the first half of 2016 and are expected to apply from 30 June 2016. However, some competent authorities may structure their ICAAP and ILAAP information requests in 2016 already based on the content of the draft Guidelines presented in the consultation paper.

Consultation process

Comments to these draft Guidelines can be sent to the EBA by clicking on the “send your comments” button on the consultation page. Please note that the deadline for submission of comments is 11 March 2016.

All contributions received will be published following the close of the consultation, unless requested otherwise. A public hearing will then take place at the EBA premises on 16 February 2016 from 10.00 to 13.00 UK time.

Link to EBA statement and consultation paper

Lavanya Rathnam

Lavanya Rathnam is an experienced technology, finance, and compliance writer. She combines her keen understanding of regulatory frameworks and industry best practices with exemplary writing skills to communicate complex concepts of Governance, Risk, and Compliance (GRC) in clear and accessible language. Lavanya specializes in creating informative and engaging content that educates and empowers readers to make informed decisions. She also works with different companies in the Web 3.0, blockchain, fintech, and EV industries to assess their products’ compliance with evolving regulations and standards.

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