Supervisory Controls for Internal Assessment of Capital Adequacy
Banks in Iraq must maintain adequate capital relative to their risk exposure and business activities. Internal Capital Adequacy Assessment Processes (ICAAP) help banks assess and allocate capital to credit, market, operational, and other risks. ICAAP is part of the CBI’s supervisory framework aligned with international prudential standards.
Effective capital planning strengthens financial stability, protects depositors, and supports sustainable growth.
Internal requirements for banks:
- Risk identification and quantification
- Stress testing and scenario analysis
- Capital planning and allocation methodologies
- Governance and board oversight
- Integration with strategic planning
CBI compliance expectations
- Develop ICAAP frameworks approved by their Board
- Maintain capital ratios at or above regulatory minimums
- Submit periodic ICAAP reports to CBI
- Conduct stress tests and present results to supervisors
- Update frameworks in response to business and market changes
How Etihad Can Assist
Etihad provides legal and regulatory advisory services to banks, financial institutions, and businesses, supporting compliance with applicable laws, regulations, and regulatory guidance issued by any competent authorities.