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  • IC-A.1 IC-A.1 Purpose

    • Executive Summary

      • IC-A.1.1

        The Internal Capital Adequacy Assessment Process ('ICAAP') Module sets out the CBB's requirements relating to banks' obligations under Pillar 2 with respect to ICAAP for assessing their overall capital adequacy in relation to their risk profile It seeks to encourage banks to develop and use better risk management techniques in identifying, monitoring and managing their risks, and to ensure that a licensee has a rigorous process in place for determining the adequacy of its capital to support all risks to which it is exposed.

        July 2018

      • IC-A.1.2

        This Module must be read in conjunction with other parts of the Rulebook, mainly:

        (a) Principles of Business;
        (b) High-level Controls;
        (c) Credit Risk;
        (d) Market Risk;
        (e) Operational Risk;
        (f) Liquidity Risk;
        (g) Reputational Risk;
        (h) Interest Rate Risk in the Banking Book ('IRRBB');
        (i) Capital Adequacy; and
        (j) Stress Testing.
        July 2018

    • Legal Basis

      • IC-A.1.3

        This Module contains the Central Bank of Bahrain's ('CBB') Directive (as amended from time-to-time) relating to ICAAP and is issued under the powers available to the CBB under Article 38 of the Central Bank of Bahrain and Financial Institutions Law 2006 ('CBB Law'). The Directive in this Module is an important component of the CBB's Supervisory Review Process and is applicable to all Bahraini conventional bank licensees (including their approved persons).

        July 2018

      • IC-A.1.4

        For an explanation of the CBB's rule-making powers and different regulatory instruments, see Section UG-1.1.

        July 2018