In February 2017 the European Banking Authority (EBA) issued the Guidelines on institutions’ internal capital adequacy assessment process (ICAAP) and internal liquidity adequacy assessment process (ILAAP) information to be collected for under the supervisory review and evaluation process (SREP) in accordance with the earlier EBA Guidelines on common procedures and methodologies for SREP (SREP Guidelines). The newly issued guidelines should contribute to the harmonization of supervisory procedures.
The information collected from institutions should contain the so-called ‘reader’s manual’; general information about ICAAP and ILAAP frameworks, business models and strategy, as well as governance; ICAAP and ILLAP specific information and summary of main conclusions of ICAAP and ILAAP and quality assurance information.
The ‘reader’s manual’ provides an overview of all ICAAP- and ILAAP-related documents submitted to the competent authorities and their status (new, unchanged, changed with minor edits, etc.) and links the specific information items referred to in these Guidelines with the documents provided by the institution to the competent authority including the material changes and any exclusions.
The competent authorities shall set out the operational procedures and notify institutions about the dates by which the information should be provided by institutions to competent authorities (remittance dates); the reference date, and specify whether different reference dates can be used for individual information items; the frequency with which the information should be provided; the technical means and format for the submission of information, and in particular whether information should be provided as one document (report) or in any other form (e.g. multiple documents).
The Guidelines also respect the principle of proportionality. The institution that falls under SREP Category 1 provides least all information items referred to in the Guidelines on an annual basis. If the Guidelines are applied to cross-border banking groups and the college of supervisors exists the competent authorities should coordinate to the maximum extent possible the scope of information and dates, means and format.
13-6-2017