ICAAP Report /Document
IC-1.2.3
Bahraini Islamic bank licensees must develop an ICAAP Report and maintain capital levels that are commensurate with their risk profiles and control environments.July 2018IC-1.2.4
The ICAAP Report must be prepared on an annual basis and submitted to the CBB on 31st May of each year.
July 2018IC-1.2.5
Bahraini Islamic bank licensees must ensure that the outcome of the ICAAP is forward looking (i.e. considers a minimum of 3-years projections) and not a static capital target. Banks must ensure that the ICAAP covers the following:(a) All material risks and potential vulnerability to its business and operational environment;(b) Capital requirements, benign and adverse forward-looking environment; and considers capital buffers during benign conditions to help meet any surge in capital demand under adverse conditions;(c) A business plan and evaluation of short-term and long-term capital needs;(d) Rigorous stress-testing and scenario analysis that identifies possible events or changes in market conditions that could adversely impact the bank; and(e) Results of stress tests and analyses are incorporated, where applicable, into the capital adequacy assessment.July 2018
