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GloriaHigley
Archer Employee
Archer Employee

The Prudential Regulation Authority (PRA), as part of the Bank of England, is the United Kingdom’s prudential regulator for deposit-takers, insurance companies and designated investment firms. The PRA is responsible for the prudential regulation and supervision of banks, building societies, credit unions, insurers and major investment firms. The PRA defines regulation aimed to mitigate adverse effects on financial stability, and in particular seeking to minimize adverse effects resulting from disruption to the continuity of financial services that can be caused by the way firms run their business or upon their failure. 

 

The purpose of the Internal Capital Adequacy Assessment Process (ICAAP) is to inform the Board of the ongoing assessment of the bank’s risks, how the bank intends to mitigate those risks and how much current and future capital is necessary having considered other mitigating factors. This Prudential Regulation Authority supervisory statement (SS) is aimed at firms to which Capital Requirements Directive IV (CRD IV) applies and replaces PRA SS5/13 and PRA SS6/13. It provides further detail on the high-level expectations outlined in ‘The Prudential Regulation Authority’s approach to banking supervision’.

 

The supervisory statement has five chapters, including:

  • Chapter 2: Expectations of firms undertaking an Internal Capital Adequacy Assessment Process (ICAAP). This sets out expectations in relation to the ICAAP and the requirements set out in the ICAA part of the PRA Rulebook.
  • Chapter 3: Stress testing, scenario analysis and capital planning. This sets out expectations of firms in relation to stress testing, scenario analysis and capital planning, and the requirements set out in Chapter 12 of the Internal Capital Adequacy Assessment Part of the PRA Rulebook.
  • Chapter 4: Reverse stress testing. This sets out expectations of firms in relation to reverse stress testing, and the requirements set out in Chapter 15 of the Internal Capital Adequacy Assessment Part of the PRA Rulebook.
  • Chapter 5: The Supervisory Review and Evaluation Process (SREP). This sets out the factors that the PRA take into consideration to assess a firm’s ICAAP, including the setting of form-specific capital requirements and the PRA buffer.

 

Languages

This content is available in English only.

 

Mappings

Mappings for the Prudential Regulation Authority Internal Capital Adequacy Assessment Process (ICAAP) Authoritative Source content to the Archer Control Standard Library are available in the authoritative source content pack.

 

Content Source

The source of this content comes from the Bank of England Prudential Regulation Authority.

 

Licensing Restrictions

The Prudential Regulation Authority Internal Capital Adequacy Assessment Process (ICAAP) Authoritative Source is available with the use of the Archer Policy Program Management use case, the Archer IT Policy Program Management use case, and/or the Archer Assessment & Authorization use case. No additional license is required.

 

For More Information

To learn more about the Prudential Regulation Authority Internal Capital Adequacy Assessment Process (ICAAP) Authoritative Source content:

 

For Additional Support

To learn more about this content, please contact your Account Rep for additional details. For technical support questions, please open a support case.

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Last update:
‎2021-08-23 04:45 PM
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