Question
Internal Capital Adequacy Assessment Process (ICAAP) is
a requirement under ______ of Basel norms.Solution
Pillar 2 of Basel III Framework: Supervisory Review Process is basically intended to ensure that the banks have adequate capital to support all the risks associated in their businesses. As per RBI guidelines ICAAP or Internal Capital Adequacy Assessment Process is done by banks themselves while SREP or Supervisory Review and Evaluation Process is conducted by RBI.
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