RiskTech Forum

zeb: ECB specifies ILAAP and ICAAP requirements

Posted: 5 October 2017  |  Author: Dr. Ulf Morgenstern, Dr. Dirk Holländer & Jens Kuttig  |  Source: zeb


Systemically important banks, or SIBs for short, are facing new ECB requirements regarding their reporting obligations in the areas of capital and liquidity. In this context, the ECB sent out a letter to the executive boards of the systemically important banks at the end of February 2017.

What is the background?

The ECB has initiated a multi-year project entitled “SSM Guides on ICAAP and ILAAP for significant institutions“. It aims at a consistent definition of the ICAAP and ILAAP in the euro area as well as the harmonization of the documentation and information to be submitted by the credit institutions.

Seven key principles are described as the supervisory authority’s expectations regarding ICAAP and ILAAP:

Time is of the essence—the supervisory authority’s procedure makes this very clear: The systemically important banks were asked to submit their feedback on the new requirements to the ECB by May 31 of this year. The institutions are supposed to apply the new principles as early as in 2019.

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