refer to BSD Circular No. 08 dated June 27, 2006 on the
Basel II implementation in Pakistan.
2. In terms of the above referred Circular, banks/DFIs
are required to have a process for assessing their overall
capital adequacy on continuing basis in relation to their
risk profile and a strategy for maintaining their capital
levels. In order to facilitate banks/DFIs to develop such
process, “Guidelines on Internal Capital Adequacy
Assessment Process” have been developed, which are
enclosed. These guidelines are aimed to supplement the
instructions issued vide above referred Circular.
3. All Banks/DFIs are required to have in place sound
and effective process for assessing their overall capital
adequacy in the light of enclosed guidelines. They may
adopt any available capital assessment methodology based
on their size, nature and complexity of the operations.
The assessment process so adopted should be comprehensively
documented and made part of bank/DFI’s strategic
decision making process.
4. All Banks/DFIs are advised to submit the major findings
of ICAAP latest by 30th April, 2009 to Banking Surveillance
Department according to the format provided as Annexure-A
in the enclosed Guidelines. It is emphasized that ICAAP
is an ongoing activity and submission of findings at a
particular date should not be construed as a periodical