Banking Sector Update – Internal Capital Adequacy Assessment Process (“ICAAP”)

The Authority has today published updates to its ICAAP guidance and issued an updated ICAAP summary sheet, which is available from this section of the website.

The main updates include:-

• Clarification of the timing of data points to be used in the ICAAP (section 1.8);
• Clarification that previous reference to “parent / group bank risk” (section 4.10) may be broader in scope (i.e. group risk, not just banking focused);
• Introducing a short section on ESG risk (section 4.15); and
• Alignment of language with the updated supervisory methodology published in May 2023 (section 8.7).

Enquiries:

Andrew Kermode

Head of Prudential Supervision

Tel: +44 (0)1624 689320