ECB publishes capital and liquidity management final guides

The ECB has published non-binding guidance for banks on its expectations regarding internal capital liquidity adequacy assessment processes. The guides will be applied from 1 January 2019.

These guides updated previous guidance from January 2016, and indicate an intensification of the ECB’s supervisory assessments and an increase in the role of ICAAP and ILAAP in firms’ SREP (Supervisory Review and Evaluation Process).