ICAAP Support

SUMMARY

Avantage Reply undertook a project to assist the client, a major international bank, in enhancing its Internal Capital Adequacy Assessment Process (ICAAP) based on the latest regulatory requirements, the local regulator‘s feedback, and the internal audit‘s feedback. 

The ICAAP expectations of the European supervisors have evolved and banks in the EU have had to progressively update their ICAAPs and other key regulatory documents accordingly.

CUSTOMER GOALS

The bank sought external support to review its ICAAP and other regulatory documentation and recommendations to ’refresh’ its content, presentation and align it to the latest requirements. This allowed it to be better aligned with regulatory requirements, best market practices and to address recent internal audit findings.

CHALLENGES

The key challenged posed by the project was the resource constraint on the client’s side. Additionally, the project needed to be delivered to the fast-approaching regulatory submission deadline.

SOLUTION

Avantage Reply provided a consultant to support with both regulatory expertise and market best practices (including an understanding of market practice across a range of firms). Then, using a gap analysis, Avantage Reply assessed the existing ICAAP report against the latest regulatory requirements, regulatory feedback, internal audit identified gaps and the observed good market practice.

CUSTOMER DESCRIPTION

The customer is the European headquarter of a Leading Wealth and Fund Management Bank involved mainly in private banking and fund management. The customer has a long-established presence in Europe, MENA and North America.