Katalysys has assisted a number of banks in completing the Internal Capital Adequacy Assessment Process (ICAAP), Internal Liquidity Adequacy Assessment Process (ILAAP) and Recovery and Resolution Planning (RRP) exercise. Katalysys can assist you in all aspects of these, including:-

• End-to-end management of the ICAAP, ILAAP and RRP exercise;

• Board/Management training on regulatory requirement and industry best practice;

• Board/Management brainstorming session(s) to identify risks and mitigants that are specific to the bank's business model;

• Board/Management workshop(s) to determine stress scenarios that the plausible and severe in nature;

• Macroeconomic scenario analysis, based on the PRA's Annual Cyclical Scenario (ACS) and PRA's scenario for banks not participating in ACS;

• Stress testing based on the bank's current position and projected business plan out to 3 or 5 years;

• Analysis of the impact of the management actions in each of the stress scenarios, and evaluation of capital adequacy after management actions; 

• Review and analysis of the bank's Pillar 2 capital and liquidity requirement, which are not already covered under Pillar 1;

• Capital planning evaluation under a stress scenario(s) and identification of the Pillar 2B capital requirement;

• Preparation of the ICAAP, ILAAP and Recovery Plan documents based on the inputs provided by the bank and the outcome from the stress tests; 

• Preparation of the ICAAP related regulatory returns (FSA071 to FSA082);

• Based on the learnings from the ICAAP/ILAAP/RRP exercise, review of the business model, capital plan, liquidity and funding plan, risk appetite statement, risk framework, key risk indicators and other internal metrics and measures; and/or

• Review of the ICAAP/ILAAP/RRP documents prepared internally by the bank, in light of the current regulatory guidance and industry best practice.

Each ICAAP, ILAAP and RRP exercise is specific to the bank's business model, customer offerings, key risks and the way the bank manages these risks. This requires significant involvement of the bank's Board and management team (e.g. participating in brainstorming sessions/discussions/meetings, identification of key risks that are specific to the bank's business model, defining assumptions for each stress scenario, reconciliation to the bank's internal records, analysis of the stress results, reviewing key deliverables and outcomes at every stage of the assessment). We will work closely and collaboratively with you through every stage of the exercise and we will assist in developing an ICAAP, ILAAP and RRP that is in line with current regulatory guidance and industry best practices.