The European Central Bank (“ECB“) published two consultation papers on March 2, 2018 on the draft principles underlying its expectations for banks’ internal capital adequacy assessment processes (“ICAAPs“) and internal liquidity adequacy assessment processes (“ILAAPs“).

A set of FAQs accompany the draft ECB guide to ICAAP and the draft ECB guide to ILAAP. The FAQs explain what the ICAAP and ILAAP are, and the purpose and legal nature of the guides.

The consultation closes on May 4, 2018 and the ECB will hold a public hearing on April 24, 2018 by telephone conference. It will publish the comments it receives, together with a feedback statement.

The ECB wrote to a number of significant institutions under the Single Supervisory Mechanism (“SSM“) about the development of the guides in February 2017.