CBK also required banks effective 2013 to develop Internal Capital Adequacy Processes (ICAAP) to inform their capital management. Though most of the banks have embraced the requirement, we have noted that there is wide disparity on the ICAAP documents submitted to CBK. To this end, CBK will shortly be issuing a proposed ICAAP Guidance Note for comments.
The Guidance Note is expected to strengthen ICAAP management with capital holdings that are aligned to banks’ risk profiles and business requirements. As I conclude, it is also worth touching on Brexit. While the economic impact thus far has been muted, Brexit has created a lot of uncertainty in the financial markets globally.