Capital adequacy and liquidity adequacy assessment.


Katalysys can assist you in the Internal Capital Adequacy Assessment Process (ICAAP) and the Individual Liquidity Adequacy Assessment (ILAA) process.


The purpose of the ICAAP document is to inform the Board of the ongoing assessment of the firm's risks, how the firm intends to mitigate those risks and how much current and future capital is necessary having considered other mitigating factors. The ICAAP document is also how the firm explains to the FSA its internal capital adequacy assessment process.


The aim of the Individual Liquidity Adequacy Assessment (ILAA) is to help firms ensure they meet the overall liquidity adequacy rule and to enable the FSA to assess firms' liquidity more effectively. It is a key tool for demonstrating appropriate liquidity risk management.


Practitioner's documents:

1) An overview of the Individual Liquidity Adequacy Standards (ILAS) for UK branches of foreign banks 

2) Calculation of the liquidity buffer requirement



External links:-

1) The FSA suggested format for the ICAAP document

2) The FSA suggested format for the ILAA document

3) The FSA suggested format for the ILSA document (guidance consultation)